Amwal Al Ghad English - 2015-08-20 09:03:02
A U.S. regulator sued Bank of New York Mellon Corp (BK.N) on Wednesday over $2.06 billion in residential mortgage-backed securities purchased by a failed Texas bank, and accused it of breaching its duties as bond trustee to protect investors.
In a complaint filed in Manhattan federal court, the Federal Deposit Insurance Corp, which sued in its capacity as receiver for the former Guaranty Bank, said it suffered more than $440 million in losses when it sold the securities in March 2010.
The FDIC filed a similar lawsuit against US Bancorp (USB.N), another major bond trustee, over more than $248 million of mortgage debt bought by Guaranty, and resulting in "significant" losses when those securities were sold.
Austin, Texas-based Guaranty Bank closed in August 2009, and the FDIC arranged for its deposits to be assumed by BBVA Compass of Birmingham, Alabama, a unit of Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA.MC). At the time, the regulator estimated the closure would cost its deposit insurance fund $3 billion. More»