U.S. District Judge Katherine Forrest in Manhattan dismissed the National Credit Union Administration's lawsuit against U.S. Bancorp and Bank of America Corp accusing them of breaching their duties as trustees for residential mortgage-backed securities that suffered losses tied to the global financial crisis.
Forrest said the National Credit Union Administration lacked standing to sue US Bancorp and Bank of America over 74 RMBS trusts from which five corporate credit unions that later failed had bought certificates, because the certificates had been re-securitized.
However, the Judge will give NCUA a chance to amend its complaint.
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