July 26, 2017
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U.S. Banking Regulator Can Sue Banks Over Mortgage Bonds: Court

NEW YORK (Reuters)


A U.S. appeals court on Wednesday revived a lawsuit by the Federal Deposit Insurance Corp against five banks including Credit Suisse Group AG <CSGN.S> stemming from their sale of mortgage-backed securities ahead of the 2008 financial crisis.

The 2nd U.S. Circuit Court of Appeals in New York ruled that a lower-court judge had erred in dismissing the FDIC's lawsuit, which also named units of HSBC Holdings Plc<HSBA.L>, Royal Bank of Scotland Group Plc<RBS.L>, UBS AG <UBSG.S> and Deutsche Bank AG<DBKGn.DE> as defendants.

(Reporting by Nate Raymond in New York; Editing by Chizu Nomiyama)