HSBC Ordered to Face Three Suits Over Its Role as RMBS TrusteeBob Van Voris
HSBC Holdings Plc must face three related lawsuits by investors claiming the bank failed to protect them in its role as trustee of securities backed by home loans that defaulted after the 2008 credit crisis.
U.S. District Judge Shira Scheindlin in Manhattan Monday allowed the suits by Royal Park Investments SA/NV, BlackRock Balanced Capital Portfolio and Phoenix Light SF Ltd. to go forward.
The judge narrowed some of the claims against HSBC. The suits, filed in 2014, are part of a wider move by the National Credit Union Administration and by investors, including hedge funds, to target the trustees of mortgage securities.
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