COMPLAINT| FDIC vs THE BANK OF NEW YORK MELLON | BNY breached its duties as trustee of 12 RMBS trusts that issued approximately $2 billion in certificates

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FDIC vs THE BANK OF NEW YORK MELLON | BNY breached its duties as trustee of 12 RMBS trusts that issued approximately $2 billion in certificates

FDIC vs THE BANK OF NEW YORK MELLON | BNY breached its duties as trustee of 12 RMBS trusts that issued approximately $2 billion in certificates

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR GUARANTY BANK
Plaintiff,

-against-

THE BANK OF NEW YORK MELLON,
Defendant.

NATURE OF ACTION

1. This is an action for damages against BNY Mellon for its breaches of contractual and statutory duties under the governing agreements, the New York Streit Act, N.Y. Real Property Law § 124, et seq. (the “Streit Act”), and under the federal Trust Indenture Act of 1939 (the “TIA”), 15 U.S.C. § 77aaa, et seq.1 as Trustee for 12 securitization trusts (the “Covered Trusts”), identified below, which issued residential mortgage-backed securities (“RMBS”) purchased by investors, including Guaranty Bank (“Guaranty”).

2. This action seeks to hold BNY Mellon accountable for abdicating its fundamental duties as the trustee to certificateholders such as Plaintiff. Under the agreements governing the Covered Trusts, BNY Mellon accepted virtually all of the powers designed to protect the certificateholders and was compensated for that role. BNY Mellon was essentially Plaintiff’s sole source of protection against breaches of the governing agreements by the other parties to those agreements, including the sponsors that sold the loans to the Covered Trusts and the servicers tasked with servicing the mortgage loans. BNY Mellon, however, shirked its duty to exercise its powers to protect Plaintiff and instead attempted to shorn itself of the responsibilities that trusteeship imports. While BNY Mellon stood idly for years, the sponsors kept defective mortgage loans in the Covered Trusts, servicers reaped excessive fees for servicing the defaulted loans from the Covered Trusts, and Plaintiff was left to suffer enormous losses.

3. The Covered Trusts were created to facilitate RMBS transactions sold to investors from 2005 to 2006. Eight of the RMBS transactions were sponsored by Countrywide Home Loans, Inc. (the “Countrywide Trusts”), and four were sponsored by EMC Mortgage Corporation (the “EMC Trusts”) (EMC Mortgage Corporation and Countrywide Home Loans, Inc., are referred to as “Countrywide” and “EMC” respectively, or collectively as the “Sponsors”).

[…]

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3 Responses to “FDIC vs THE BANK OF NEW YORK MELLON | BNY breached its duties as trustee of 12 RMBS trusts that issued approximately $2 billion in certificates”

  1. james perry says:

    Is centex home equity ie nationstar mortgage one of the sponsors in the EMC or countrywide?

  2. If you follow the top two links in my above webpage you will see that FDIC is mother of all frauds, for instance for the fact that FDIC performed an historic $1/2 trillion drug money laundering operation of Wachovia Drug Cartel into what became Wells Fargo Drug Cartel by swift name changes, as their routine criminal operations, as I have documented in this website, as well as other websites before.

    FDIC v. U.S. Bank complaint attached herein is a total sham in part due to the fact that FDIC and its associates in crimes know too well that all Mortgaged-Backed-Securities (“MBS”) are worthless junk bonds which FDIC & Associates engineered in the first place, as I have repeatedly documented in many court documents since 2004, up to my U.S. Supreme Court Case #11-1013, and currently in my operative 9th Circuit Court of Appeal Case # 13-57063.

    In support of MBS being worthless junk bonds, here is the analysis, and expert opinion, of Marilyn Barnewall who is an old hand, and a WHO-IS-WHO of U.S. banking industry who ended her detailed below article with the following quotes:

    “As for derivatives, they are in my opinion unlawful because there is much evidence that securitization is unlawful and securitization is usually part of the derivatives process. That, however, is just an opinion. Here?s another opinion: Derivatives are largely worthless pieces of paper with no value attached to them.”

    “Keep that in mind the next time you hear that all of the debt being taken on by the U.S. Treasury via the Federal Reserve System is collateralized by derivatives. In other words, all of that debt is collateralized by junk paper.”

    What are Derivatives ?
    By Marilyn MacGruder Barnewall on July 13, 2014
    http://www.veteranstoday.com/2014/07/13/what-are-derivatives/

  3. More details on FDIC & other public entities concerted actions in engineering the world’s single largest drug money laundering operation of half a trillion dollars with simple name changes of drug money laundering banks can be seen in this previous page:

    http://stopforeclosurefraud.com/2014/03/19/video-wells-fargo-under-fire-for-fabricating-false-foreclosure-documents-w-attorney-linda-tirelli/

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