Commerzbank's $1 billion mortgage lawsuit against BNY Mellon dismissed by US judge
A US judge has dismissed most of Commerzbank's lawsuit against Bank of New York Mellon (BNY Mellon), where the German bank sought to hold BNY Mellon liable for over $1 billion in losses on toxic mortgages purchased before the 2008 financial crisis. The judge rejected Commerzbank's claims on all but 13 of the 100 certificates and notes it bought and dismissed all negligence claims against BNY Mellon. The surviving claims cover 13 certificates that Commerzbank bought from Barrington II CDO Ltd, but only as to whether BNY Mellon acted as a "prudent person" following borrower defaults.