The Federal Deposit Insurance Corporation sued the Bank of New York Mellon (BK) on Wednesday for more than $2 billion in mortgage-backed securities purchased by a failed Texas bank, claiming BNY Mellon breached its duties as bond trustee to protect investors.

Per Reuters:

The Federal Deposit Insurance Corp, which sued in its capacity as receiver for Guaranty Bank, said it suffered more than $440 million in losses when it sold the securities in March 2010.

Austin, Texas-based Guaranty Bank closed in August 2009, and the FDIC arranged for its deposits to be assumed by BBVA Compass of Birmingham, Alabama, a unit of Spain's BBVA. At the time, the regulator estimated the closure would cost its deposit insurance fund $3 billion.

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