On December 23 and 24, Phoenix Light SF Limited and other RMBS
certificateholders filed suit against HSBC, Wells Fargo, Deutsche
Bank, Bank of New York Mellon, U.S. Bank, and Bank of America in
the United States District Court for the Southern District of New
York regarding $2.4 billion in RMBS. The complaints assert causes
of action under the Trust Indenture Act and a provision of the New
York Real Property Law known as the Streit Act, as well as under
state law for breach of contract, breach of fiduciary duty,
negligence, gross negligence, and negligent misrepresentation.
Plaintiffs allege that the trustees breached their duties under the
governing trust agreements by failing to notify the investors of
deficiencies in the loans, failing to take action to address those
alleged deficiencies, and failing to require the repurchase of
defective loans. Plaintiffs seek compensatory damages and
unspecified equitable relief. HSBC Complaint. Wells Fargo Complaint. Deutsche
