Court Dismisses U.S. Bank’s RMBS Repurchase Claims Against Citigroup As Too Speculative

On November 14, Judge George B. Daniels of the United States District Court for the Southern District of New York dismissed several of U.S. Bank's repurchase claims against Citigroup Global Markets Realty Corp. U.S. Bank alleged that Citigroup breached representations and warranties with respect to loans underlying $832 million of RMBS. The Court dismissed the trustee's claim for breach of contract as to loans for which the trustee had not requested repurchase, holding that U.S. Bank did not sufficiently allege that Citigroup actually discovered any breaches of representations and warranties as to those loans. The Court also dismissed the trustee's claim for anticipatory breach of contract based on repurchase requests sent to Citigroup the same day as the complaint was filed. In...