Commerzbank Fails to Revive Wells Fargo RMBS Suit on Appeal (1)

Commerzbank AG can’t pursue claims against Wells Fargo Bank NA for more than $100 million worth of losses tied to residential mortgage-backed securities, the Second Circuit ruled Wednesday.

The German bank lacks standing to sue over the RMBS trust certificates, the US Court of Appeals for the Second Circuit said.

Commerzbank had already sold 21 of the 24 certificates at issue before suing, the court said. And the contracts governing the other three certificates deprive the company of standing because they bar suits by owners other than the original certificate holders, the court said in an unsigned, unpublished opinion.

Its ...