Law360, New York (May 31, 2016, 3:38 PM EDT) -- Trustee U.S. Bank told a New York federal judge Monday that a trial over claims UBS AG reneged on obligations to repurchase $2 billion in shoddy bundled home loans was in the right court because the case is related to loan originator American Home Mortgage Corp.A group of trusts, acting through their trustee U.S. Bank NA, responded Monday to U.S. District Judge P. Kevin Castel’s May 19 order that both sides explain why the case is in New York federal court, after the judge said that the 2012 complaint had invoked subject matter jurisdiction in a confusing way and that... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
Trustee US Bank claims that the $2bn UBS mortgage trail should be conducted in the New York federal court as the complaint is related the American Home Mortgage Corp's 2007 bankruptcy trial held in the same court. The trial concerns claims UBS AG reneged on obligations to repurchase 2012 dodgy loans with 'shady originators' including American Home Mortgage Corp. The trustee claims the Southern District of New York's bankruptcy court docket applies to this case as American Home is set to owe UBS indemnification charges following misstatements in its distribution of dodgy loans.