FHFA v. HSBC NORTH AMERICA HOLDINGS

Nos. 11 Civ. 6189(DLC), 11 Civ. 6190(DLC), 11 Civ. 6192(DLC), 11 Civ. 6193(DLC), 11 Civ. 6195(DLC), 11 Civ. 6198(DLC), 11 Civ. 6200(DLC), 11 Civ. 6201(DLC), 11 Civ. 6202(DLC), 11 Civ. 6203(DLC), 11 Civ. 6739(DLC), 11 Civ. 7010(DLC).

988 F.Supp.2d 363 (2013)

FEDERAL HOUSING FINANCE AGENCY, Plaintiff, v. HSBC NORTH AMERICA HOLDINGS INC., et al., Defendants; And other FHFA cases.

United States District Court, S.D. New York.

December 16, 2013.


Attorney(s) appearing for the Case

Philippe Z. Selendy , Manisha M. Sheth , Jordan A. Goldstein , Toby E. Futter , Quinn Emanuel Urquhart & Sullivan, LLP, Christopher P. Johnson , Michael A. Hanin , Kanchana Wangkeo Leung , Kasowitz, Benson, Torres & Friedman LLP, New York, NY, for the plaintiff.

James P. Rouhandeh , Brian S. Weinstein , Daniel J. Schwartz , Nicholas N. George , Jane M. Morril , Davis Polk & Wardwell LLP, New York, NY, for defendants Morgan Stanley, Morgan Stanley & Co. Incorporated (n/k/a Morgan Stanley & Co. LLC), Morgan Stanley Mortgage Capital Holdings LLC (successor-in-interest to Morgan Stanley Mortgage Capital Inc.), Morgan Stanley ABS Capital I, Inc., Morgan Stanley Capital I Inc., Saxon Capital, Inc., Saxon Funding Management LLC, Saxon Asset Securities Company, Gail P. McDonnell, Howard Hubler, David R. Warren, and Steven S. Stern.

Bruce Clark , Sullivan & Cromwell LLP, New York, NY, Amanda F. Davidoff , Sullivan & Cromwell LLP, Washington, DC, for Defendants First Horizon National Corporation, First Tennessee Bank National Association, FTN Financial Securities Corporation, First Horizon Asset Securities, Inc., Gerald L. Baker, Peter F. Makowiecki, Charles G. Burkett, and Thomas J. Wageman.

Thomas C. Rice , David J. Woll , Andrew T. Frankel , Alan C. Turner , Simpson Thacher & Bartlett LLP, New York, NY, for Defendants Deutsche Bank AG, Taunus Corporation, Deutsche Bank Securities Inc., DB Structured Products, Inc., Ace Securities Corp., Mortgage IT Securities Corp.

David H. Braff , Brian T. Frawley , Jeffrey T. Scott , Sullivan & Cromwell LLP, New York, NY, for defendants Barclays Bank PLC, Barclays Capital Inc., Securitized Asset Backed Receivables LLC, Paul Menefee, John Carroll, and Michael Wade.

David Blatt , John McNichols , Williams & Connolly LLP, Washington, DC, for Defendants Bank of America Corporation; Bank of America, N.A.; Asset Backed Funding Corp.; Banc of America Funding Corp.; Merrill Lynch & Co., Inc., Merrill Lynch Mortgage Lending, Inc., Merrill Lynch Mortgage Capital Inc., First Franklin Financial Corp., Merrill Lynch Mortgage Investors, Inc., Merrill Lynch Government Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Inc.

Richard H. Klapper , Theodore Edelman , Michael T. Tomaino, Jr. , Tracy Richelle High, Sullivan & Cromwell LLP, New York, NY, for Defendants Goldman, Sachs & Co., GS Mortgage Securities Corp., Goldman Sachs Mortgage Company, The Goldman Sachs Group, Inc., Goldman Sachs Real Estate Funding Corp., Peter C. Aberg, Howard S. Altarescu, Robert J. Christie, Kevin Gasvoda, Michelle Gill, David J. Rosenblum, Jonathan S. Sobel, Daniel L. Sparks, and Mark Weiss.

Richard W. Clary , Richard J. Stark , Michael T. Reynolds , Lauren A. Moskowitz , Cravath, Swaine & Moore LLP, for Defendants Credit Suisse Securities (USA) LLC, Credit Suisse Holdings (USA), Inc., Credit Suisse (USA), Inc., DLJ Mortgage Capital, Inc., Credit Suisse First Boston Mortgage Securities Corporation, Asset Backed Securities Corporation, Credit Suisse First Boston Mortgage Acceptance Corporation, Andrew A. Kimura, Jeffrey A. Altabef, Evelyn Echevarria, Michael A. Marriott, Zev Kindler, Thomas E. Siegler, Thomas Zingalli, Carlos Onis, Steven L. Kantor, Joseph M. Donovan, Juliana Johnson, and Greg Richter.

Bruce Clark , Sullivan & Cromwell LLP, New York, NY, Amanda F. Davidoff , Sullivan & Cromwell LLP, Washington, DC, for Defendants Nomura Securities International, Inc., Nomura Holding America Inc., Nomura Asset Acceptance Corporation, Nomura Home Equity Loan, Inc., Nomura Credit & Capital, Inc., David Findlay, John McCarthy, John P. Graham, Nathan Gorin, and N. Dante LaRocca.

Jay B. Kasner , Scott Musoff , George Zimmerman , Robert A. Fumerton , Skadden, Arps, Slate, Meagher & Flom LLP, New York, NY, for Defendants SG Americas, Inc., SG Americas Securities Holdings, LLC, SG Americas Securities, LLC, SG Mortgage Finance Corp., and SG Mortgage Securities, LLC, Arnaud Denis, Abner Figueroa, Tony Tusi, and Orlando Figueroa.

John M. Conlon , Mark S. Hanchet , Michael O. Ware , Mayer Brown LLP, New York, NY, for Defendants HSBC North America Holdings Inc., HSBC USA Inc., HSBC Markets (USA) Inc., HSBC Bank USA, NA., HSI Asset Securitization Corporation.

Pamela Rogers Chepiga , Josephine A. Cheatham , Allen & Overy LLP, New York, NY, for Defendant Samuel L. Molinaro, Jr.

Thomas C. Rice , David J. Woll , Alan Turner , Simpson Thacher & Bartlett LLP, New York, NY, for Defendant RBS Securities Inc.

Daniel C. Zinman , Matthew M. Riccardi , Richards Kibbe & Orbe LLP, New York, NY, for Defendants George C. Carp, Robert Caruso, George E. Ellison, Adam D. Glassner, Daniel B. Goodwin, Juliana Johnson, Michael J. Kula, William L. Maxwell, Mark I. Ryan, and Antoine Schetritt; Matthew Whalen; Brian Sullivan; Michael McGovern; Donald Puglisi; Paul Park, and Donald Han.

Dani R. James , Jade A. Burns , Kramer Levin Naftalis & Frankel LLP, New York, NY, for Defendant Jeffrey L. Verschleiser.


OPINION & ORDER

DENISE COTE, District Judge:

Before the Court are a September 27, 2013 motion for partial summary judgment by the Federal Housing Finance Agency ("FHFA") and a related November 1, 2013 motion to certify a question of law to the Supreme Court of Virginia filed by the defendants. Both motions concern the issue of whether a loss causation defense exists under the Virginia and Washington, D.C. Blue Sky laws. For the reasons stated below,...

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