Wey et al v. Nasdaq, Inc. et al

Filing 40

OPINION & ORDER re: 31 MOTION to Remand to State Court filed by NYG Capital, LLC, Benjamin Wey. For the reasons stated above, Plaintiffs' motion to remand this case to state court is GRANTED. The Clerk of Court is respectfully directed to terminate the motion docketed at ECF No. 31 and close this case. (Signed by Judge John F. Keenan on 3/25/2019) (rro) Transmission to Docket Assistant Clerk for processing.

Case 1:09-md-02013-PAC Document 57

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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In re FANNIE MAE 2008 SECURITIES
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LITIGATION
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Filed 09/30/10 Page 1 of 45
USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #: _________________
DATE FILED: 03/25/2019
08 Civ. 7831 (PAC)
09 MD 2013 (PAC)
OPINION & ORDER

HONORABLE PAUL A. CROTTY, United States District Judge:
BACKGROUND1
The early years of this decade saw a boom in home financing which was fueled, among
other things, by low interest rates and lax credit conditions. New lending instruments, such as
subprime mortgages (high credit risk loans) and Alt-A mortgages (low-documentation loans)
kept the boom going. Borrowers played a role too; they took on unmanageable risks on the
assumption that the market would continue to rise and that refinancing options would always be
available in the future. Lending discipline was lacking in the system. Mortgage originators did
not hold these high-risk mortgage loans. Rather than carry the rising risk on their books, the
originators sold their loans into the secondary mortgage market, often as securitized packages
known as mortgage-backed securities (“MBSs”). MBS markets grew almost exponentially.
But then the housing bubble burst. In 2006, the demand for housing dropped abruptly
and home prices began to fall. In light of the changing housing market, banks modified their
lending practices and became unwilling to refinance home mortgages without refinancing.

1

Unless otherwise indicated, all references cited as “(¶ _)” or to the “Complaint” are to the Amended Complaint,
dated June 22, 2009. For purposes of this Motion, all allegations in the Amended Complaint are taken as true.

1