A federal judge Friday denied UBS
AG's UBS
-0.08%effort to dismiss a lawsuit by the federal regulator for Fannie Mae
and Freddie Mac alleging the Swiss bank deceived the mortgage giants into
buying billions of dollars of shaky loans during the housing boom.
The Federal Housing Finance Agency filed
suits against UBS and 17 other banks last summer alleging that they violated
federal securities law in selling nearly $200 billion of mortgage-backed
securities. The suits represent one of the most sweeping actions by a federal
regulator stemming from the mortgage crisis.
Friday's ruling by U.S. District Judge Denise
Cote of Manhattan is the first on any of the defendants' motions to dismiss the
FHFA suits. The court is handling pretrial proceedings for 15 of the lawsuits
filed by the FHFA
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