If bank defendants in
the Federal Housing Finance Agency's 15 cases before U.S. District Judge Denise
Cote in Manhattan federal court weren't already thinking about what it might
cost to settle securities claims by Fannie Mae and Freddie Mac's conservator,
now would be a good time to start.
On Friday, in a 66-page opinion that wipes out
strong defense arguments in all of the FHFA cases before her, Cote denied UBS'
motion to dismiss any of the agency's federal securities claims (though she did
toss the state-law negligent misrepresentation claim). Most significantly, the
judge brushed aside UBS' argument that the FHFA's claims were time-barred under
both the statute of limitations and the more obscure statute of repose.
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