Judge: Bank's 'Sue And Be Sued' Clause Allows For Federal Court Removal

Judge: Bank's 'Sue And Be Sued' Clause Allows For Federal Court Removal

BOSTON - The "sue and be sued" clause of a bank's congressional charter allows for the bank's lawsuit against a number of defendants that misrepresented the investment quality of certain mortgage-backed securities they sold to the bank to be removed to federal court, a federal judge in Massachusetts ruled March 9 (Federal Home Loan Bank of Boston v. Ally Financial, Inc., et al., No. 11-10952, D. Mass.; 2012 U.S. Dist. LEXIS 31483).

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