Oklahoma Police Pension & Retirement System, Oklahoma City, filed a class-action suit against U.S. Bank, charging it failed to properly fulfill its duty as trustee of two investment trusts.
The suit, filed Nov. 9 in the U.S. District Court in New York, charges that U.S. Bank — in its role as trustee — hurt investors in two covered trusts in which the $1.8 billion system invested, the Bear Stearns ARM Trust 2005-10 and Bear Stearns ARM Trust 2005-12.
Among the items in the complaint were that “U.S. Bank regularly disregarded its contractual and statutory duties to review the loan files to ensure that there were no missing, defective or incomplete documents, to enforce its obligations that defective loans were removed from the mortgage pools supporting the certificates.”
Steven K. Snyder, system executive director and chief investment officer, did not return a phone call by press time. No further information could be learned by press time.