granted Plaintiff’s motions to remand

FHLB-SF’s Securities Fraud Cases Remanded to State Court

In an Order issued December 20th, Federal District Judge Samuel Conti of the Northern District of California granted Plaintiff’s motions to remand FHLB of San Francisco v. Credit Suisse Securities, Inc. and FHLB of San Francisco v. Deutsche Bank Securities, Inc. to state court. The Court considered and rejected arguments that the FHLB-SF’s charter confers federal jurisdiction over actions brought by the Bank, as well as that the Bank is an agency of the United States and therefore should be in federal court. Although the Court accepted that federal jurisdiction could be properly predicated on the fact that bankrupt originators may owe indemnity to the Defendants, it declined to accept that jurisdiction and instead used its equitable powers to remand the case to state court. Decision.