Bank of New York (BK) Gets Win in Appeals Court Over Investor Suit on MBS Trustee Claims

Bank of New York - Mellon (NYSE: BK) is on watch Wednesday following news that a U.S. appeals court threw out most claims against the bank as trustee for subpar mortgage-backed securities issued by BofA's Countrywide unit.

Reuters noted that the 2nd U.S. Circuit Court of Appeals in New York said BNY didn't have to face claims from 25 of 26 trusts which were alleged to have contained the risky securities.

The suit was filed six weeks after BofA entered an $8.5 billion settlement with investors of over 530 mortgage securitization trusts, which lost billions in the housing collapse.

Shares of BNY are flat in early trading.

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