GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
750159

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Bank of New York Mellon May Face Suit over $1.12B Loss in RMBS Trusts

Posted by on in BANKSTERS
  • Font size: Larger Smaller
  • Hits: 1312
  • 2 Comments
  • Print

On it goes.......

BNY Mellon May Face Suit over $1.12B Loss in RMBS Trusts

March 04, 2016

http://www.nasdaq.com/article/bny-mellon-may-face-suit-over-112b-loss-in-rmbs-trusts-cm588532

Legal headwinds pertaining to business malpractices before the 2008 financial crisis continue to haunt The Bank of New York Mellon Corporation.  As per a Manhattan federal judge ruling, the company must face a lawsuit alleging that the bank has failed in its role as a trustee for 5 residential mortgage-backed securities (RMBS) trusts, which caused investors losses worth $1.12 billion. The news was first reported by Reuters.

U.S. District Judge Gregory Woods said Belgium's Royal Park Investments SA/NV may pursue claims that BNY Mellon failed to undertake necessary action to push the loan sellers to replace or repurchase the bad loans. The concerned 5 trusts date between 2005 and 2007.  Royal Park, which is seeking class-action status on behalf of other investors, accused BNY Mellon of breaching its duties in part due to fear of losing business from other financial services companies. It alleged that BNY Mellon did not accurately scrutinize the risky securities and ignored how the underlying loans were underwritten and serviced.   According to Royal Park, its own RMBS in the five trusts overseen by Bank of New York Mellon have become "completely worthless."  

 While certain claims were rejected by the judge, Royal Park can pursue claims including breach of contract, breach of trust and violations of the federal Trust Indenture Act.  Royal Park has earlier received permission to pursue similar claims against banks like Deutsche Bank AG and HSBC Holdings plc .   Investors who suffered losses due to poor underwritten mortgages in the wake of the financial crisis, in recent years have focused on trustees claiming that the latter failed to force lenders and bond issuers to repurchase those loans. 


Since the financial crisis, while several major U.S. banks have shelled out billions of dollars in legal and regulatory settlements and repurchase claims, the latest claims on BNY Mellon is yet another warrant that banks cannot get away with their past misconducts.   BNY Mellon along with U.S. Bancorp has been under the Federal Deposit Insurance Corp. ("FDIC") radar for alleged negligence as trustees for nearly $2.2 billion worth RMBS sold to the Texas-based failed Guaranty Bank.

Such accusations and subsequent lawsuits will not only continue to adversely impact BNY Mellon's creditability but also lead to a rise in legal costs.  Read more: http://www.nasdaq.com/article/bny-mellon-may-face-suit-over-112b-loss-in-rmbs-trusts-cm588532#ixzz43X9L0OI5

 

 

 

Last modified on
Rate this blog entry:

Comments

  • Duped
    Duped Tuesday, 22 March 2016

    Duped

    Banks cannot get away with their past misconducts. I hope our politicians get the message!!!

  • organza
    organza Tuesday, 22 March 2016

    Now that's interesting.. to repurchase must mean the bad eggs end up back on the seller books. How do they then remove the stench I wonder? Surely they don't play pass the parcel in a never ending circle until somebody ends up with the booby prize!

Leave your comment

Guest Sunday, 25 October 2020