U.S. Supreme Court says banks cannot appeal in FHFA case

Reuters

WASHINGTON, Oct 7 (Reuters) - The U.S. Supreme Court onMonday said banks sued by the U.S. Federal Housing FinanceAgency over mortgage-backed securities that were sold to FannieMae and Freddie Mac cannot appeal apreliminary lower court ruling they object to.

In 2011, the FHFA sued 18 banks, including Barclays Plc, Bank of America Corp, Deutsche Bank AG, Goldman Sachs Group Inc and JPMorgan Chase &Co, accusing them of violating securities laws bymisleading Fannie and Freddie about $200 billion inmortgage-backed securities they purchased. The Supreme Courtsaid that banks involved in 13 lawsuits now before the samejudge that have yet to be settled did not have permission toseek review of a New York-based 2nd U.S. Circuit Court ofAppeals decision from April.

Rates

View Comments (2)