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Nov 19, 2014

U.S. Bank must face restitution claims in Peregrine lawsuit -judge

Nov 19 (Reuters) – U.S. Bank, sued by the government last
year for allegedly aiding a massive fraud at brokerage Peregrine
Financial, must face claims for nearly $36 million in
restitution to Peregrine’s victims, a federal judge in Iowa
ruled.

Judge Linda Reade on Wednesday rejected the bank’s argument
that restitution should be sought from the person who committed
the fraud, Peregrine founder Russell Wasendorf Sr., and not from
the bank.

Oct 22, 2014

Judge dismisses Massachusetts suit against Fannie, Freddie

NEW YORK (Reuters) – A federal judge has dismissed a lawsuit brought by Massachusetts Attorney General Martha Coakley that accused mortgage finance giants Fannie Mae and Freddie Mac of violating a state law meant to prevent financially troubled residents of the state from losing their homes.

Filed in June, the lawsuit said Fannie and Freddie blocked a state program that let Massachusetts nonprofit groups buy foreclosed homes and resell them to the original homeowners.

Oct 1, 2014

CitiMortgage, Wells lose bid to end lawsuit over credit reports

NEW YORK, Oct 1 (Reuters) – Wells Fargo Bank and
Citigroup’s mortgage unit must face claims that they
violated federal law by falsely notifying credit reporting
agencies that thousands of homeowners went through bankruptcies
or foreclosures, a federal judge has ruled.

In an order on Monday, U.S. District Judge Janis Sammartino
said consumers had offered enough facts to support their claims
that Wells and CitiMortgage Inc gave inaccurate information to a
credit reporting agency, hurting consumers’ ability to get new
loans.

Sep 10, 2014

PwC to face U.S. lawsuit over Colonial Bank collapse – court ruling

NEW YORK, Sept 10 (Reuters) – Accounting firms
PricewaterhouseCoopers and Crowe Horwath must face a lawsuit
accusing them of professional malpractice and breach of contract
for not catching a fraud that led to the 2009 collapse of
Colonial Bank, a federal judge has ruled.

Filed in 2011 by the bank’s parent Colonial BancGroup Inc
and its trustee, the lawsuit accused the accounting
firms of making “reckless and grossly inaccurate” reports to the
bank’s board, allowing Colonial to conceal a seven-year fraud
that drained it of $1.8 billion.

Jul 29, 2014

U.S. court upholds $67 mln verdict against TD Bank in Ponzi suit

NEW YORK, July 29 (Reuters) – A U.S. federal appeals court
has upheld a $67 million jury verdict against TD Bank, part of
Canada’s Toronto-Dominion Bank, for helping convicted
former lawyer Scott Rothstein run a Florida Ponzi scheme that
cost investors more than $1 billion.

In a decision on Tuesday, a three-judge panel from the 11th
U.S. Circuit Court of Appeals, affirmed a lower court’s decision
not to overturn the verdict or grant TD Bank a new trial in a
lawsuit brought by Texas investment partnership Coquina
Investments.

Jul 29, 2014

Court upholds $67 mln verdict against TD Bank in Ponzi suit

NEW YORK, July 29 (Reuters) – A federal appeals court has
upheld a $67 million jury verdict against TD Bank, part of
Canada’s Toronto-Dominion Bank, for helping convicted
former lawyer Scott Rothstein run a Florida Ponzi scheme that
cost investors more than $1 billion.

In a decision on Tuesday, a three-judge panel from the 11th
U.S. Circuit Court of Appeals, affirmed a lower court’s decision
not to overturn the verdict or grant TD Bank a new trial in a
lawsuit brought by Texas investment partnership Coquina
Investments.

Jul 9, 2014

U.S. judge tosses Miami mortgage discrimination suit against BofA

By Dena Aubin

(Reuters) – A federal judge has dismissed the City of Miami’s mortgage discrimination lawsuit against Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), ruling the city lacked legal standing to sue for damages under the U.S. Fair Housing Act.

In a ruling with implications for other banks facing similar lawsuits, U.S. District Judge William Dimitrouleas on Tuesday said the city’s claims were outside the purpose of the 1968 law, meant to assure fair housing nationwide.

Jul 8, 2014

Wells Fargo loses latest bid to end L.A. discrimination suit

NEW YORK (Reuters) – A federal judge has denied Wells Fargo’s latest bid to end a lawsuit brought by the Los Angeles city government accusing the bank of discriminatory lending that led to a wave of foreclosures among minority borrowers.

In a ruling made public on Monday, U.S. District Judge Otis Wright denied the San Francisco-based bank’s motion to have an appeals court decide whether Los Angeles has legal standing to recover damages under the U.S. Fair Housing Act.

Jun 25, 2014

US housing finance regulator considers insurance suits

WASHINGTON, June 25 (Reuters) – A U.S. housing regulator
will look into whether lawsuits should be filed by
government-controlled mortgage finance firms Fannie Mae
and Freddie Mac against companies that left
them on the hook for overpriced insurance, a watchdog at the
regulator said on Wednesday.

Overpriced insurance may have cost the companies $158
million in 2012 alone, the Federal Housing Finance Agency’s
Office of Inspector General said in a report.

Jun 23, 2014

U.S. Supreme Court declines to narrow bank fraud statute

June 23 (Reuters) – The U.S. Supreme Court on Monday
declined to reduce the scope of a federal criminal law against
bank fraud, ruling that prosecutors do not need to prove that
defendants intended to defraud a bank.

In a ruling that was unanimous on the outcome, but split on
the reasoning, the court affirmed a decision by the Denver-based
10th U.S. Circuit Court of Appeals that the bank fraud statute
“casts a wide net for bank fraud liability.”