US Judge rejects HSBC bid to dismiss lawsuit over failed credit unions
A US judge has rejected&nbsp;HSBC's&nbsp;bid to dismiss a US lawsuit, claiming that its failure to perform its duties as trustee for $2.37bn of residential mortgage-backed securities contributed to the downfall of five federal credit unions. This was despite the fact that most of the debt has been re-securitised and that the new trustee had refused to sue HSBC on the National Credit Union Administration (NCUA)'s behalf. This lawsuit is one of many in which the NCUA are seeking to recover investment losses that led to the 2009 and 2010 failures of US Central, Western Corporate, Constitution Corporate, Members United Corporate and Southwest Corporate credit unions. HSBC has declined to comment.
National Credit Union Administration Board et al v. HSBC Bank US, National Association, No. 1:2015cv02144 - Document 56 (S.D.N.Y. 2015)

Court Description: OPINION AND ORDER re: 35 MOTION to Dismiss Pursuant to Rule 12(b)(1) and 12(b)(6). filed by HSBC Bank US, National Association. For the reasons set forth above, HSBC's motion to dismiss is DENIED. Plaintiffs must amend their Complaint to conform to Rule 23.1 and Delaware law within thirty days of the date of this Order. The Clerk of the Court is directed to close this motion (Dkt. No. 35). SO ORDERED. (Signed by Judge Shira A. Scheindlin on 7/20/2015) (ajs)