Something new, this time from the FDIC. This time the FDIC is suing Bank of New York/Mellon as Trustee for REMIC Trust certificate holders and who failed to protect them as trustee. The suit is for breach of fiduciary duty. They will defend saying that they were prevented from taking action. But when it comes out that the money paid by investors, like a small Texas bank, never went into the trust, things won’t look good for BONY or any other “trustee.” None of the REMIC trustees seem to have any duties. They just collect fees in exchange for using their names on the documentation for the “Trust”. The FDIC had to pick up the tab for the failed certificates owned by the bank that went into receivership.
Filed under: foreclosure