Bank of New York Mellon Must Face $1.12B RMBS Lawsuit

U.S. District Judge Judge Gregory Woods in Manhattan says that Bank of New York Mellon Corp. (BK) must face a residential mortgage-backed securities fraud lawsuit holding the bank liable for $1.12B of investor losses. Royal Park Investments SA/NV, which is a Belgian investment fund, may now proceed with its claims, including those alleging breach of trust, breach of contract, and Federal Trust Indenture Act violations.

在反对BNY Mellon的情况下，皇家公园希望为其他投资者提供集体诉讼。它声称其在有关信托中的RMB现在是“完全毫无价值的”。

该投资基金认为，BNY Mellon在受托人担任五个信托的职务中，无视滥用行为，以维修和承保的基础贷款的方式，并没有要求将不良贷款回购。皇家公园（Royal Park）认为，BNY Mellon出于担心会失去业务或使其他金融服务公司生气的义务违反了其义务。

Over the past year, the investment fund has been allowed to pursue similar cases against HSBC Holdings Plc. (HSBC) And Deutsche Bank AG (DB). In the investment fund’s case against Deutsche Bank. U.S. District Judge Alison J. Nathan in New York recently denied the bank’s bid to get the proposed class action over $3.1B in RMBS losses dismissed. She did, however, dismiss derivative claims. Royal Park claims that Deutsche Bank knew by April 2011 that loans involved were highly defective but refused to force loan sellers to buy back the loans or replace them when it became clear that the mortgages backing the bonds were defaulting. Nathan also said that the plaintiffs detailed claims of significant losses, high default rates, and widespread probes into RMBS securitization were sufficient that the court was able to draw “reasonable inference” that loan guarantees had been breached.

It was just in August when the Federal Deposit Insurance Corp. also sued BNY Mellon in an RMBS. The regulator filed the case, serving as receiver for the Guaranty Bank of Texas, which purportedly suffered over $440M losses when it sold the securities that it bought from BNY Mellon. That case involves a dozen mortgage-backed trusts that were issued by Countrywide Home Loans Inc., which now belongs toBank of America Corp.（BAC）和BEAR Stearns Cos的EMC抵押公司单位。JPMorgan＆Chase（JPM）has since purchased Bear.

The FDIC accused BNY Mellon of disregarding its obligation to make sure loan documents involved were not defective or incomplete. Instead, contends the regulator, BNY Mellon allowed sponsors to keep faulty mortgage loans in covered trusts while making excessive fees for servicing the loans that defaulted from said trusts. Meantime, Guaranty Bank sustained losses.

Our mortgage-backed securities fraud lawyers are here to help investors recoup their losses. The SSEK Partners Group works with high net worth individual investors and institutional investors. Our MBS fraud lawyers also represents retail investors. Contact us today to request your free case consultation.

纽约州梅隆银行必须面临超过11.2亿美元的抵押贷款损失，路透社，2016年3月3日

FDIC Sues Bank of NY Mellon, Citigroup, and US Bancorp for soured RMBSs Purchased by Guaranty Bank, Institutional Investor Securities Blog, August 27, 2015

皇家公园（Royal Park, Law360, February 3, 2016