FDIC sues Citigroup and US Bancorp over faulty RMBS
The Federal Deposit Insurance Corporation (FDIC) is suing Citigroup and US Bancorp, along with BNY Mellon, which we noted last week, for faulty residential mortgage-backed securities which were once owned by failed Texas bank, Guaranty Bank. The FDIC is hoping to recoup some of the c. $695m that was lost due to the bank allegedly failing as bond trustees to ensure that mortgages backing Guaranty's securities were properly underwritten. &nbsp;The banks have so far declined to comment.
The Federal Deposit Insurance Corporation sued Citigroup (C) and US Bancorp (USB), along with the Bank of New York Mellon (BK), on Wednesday in an attempt to get back more than $695 million that it lost from selling shoddy residential mortgage-backed securities once owned by a failed Texas bank.

HousingWire reported on Wednesday that the FDIC was suing the Bank of New York Mellon, with two other bank names now getting added to that list.