FDIC Suit Revival by Appeals Court Riles Defendant Banks
Deutche Bank and Royal Bank of Scotland (RBS) have requested the Fifth Circuit Court of Appeals to reconsider a recent ruling that effectively revived a suit brought by the Federal Depositors Insurance Corp.’s (FDIC) alleging securities fraud associated with the sale of approximately $2.1 billion worth of residential mortgage-backed securities. The banks argue the appeals court ruling defied the U.S. Supreme Court.
The banks claim the Fifth Circuit’s holding…that a Texas district court judge disregarded an FDIC statute preempting all state limitations periods….when it dismissed the consolidated suit accusing Deutche Bank, RBS as well as Goldman Sachs & Co. of fraudulently underwriting and marketing residential mortgage backed securities. The banks counsel argued the courts holding relied on issues that were already roundly rejected by the Supreme Court.
The experienced securities litigation attorneys at Colling Gilbert Wright & Carter have litigated and resolved hundreds of FINRA arbitration claims. If you believe you lost money due to negligence or fraud on the part of your FINRA registered broker dealer, please contact us for a free case evaluation.