RBS Securities late last week asked a federal court in Los Angeles to dismiss securities claims against it by the National Credit Union Administration in the failure of WesCorp FCU, saying the now defunct wholesale institution was a sophisticated investor and knew the risks of investing in almost $1 billion of nonprime MBS.

Under state and federal securities laws, institutional investors who have sophisticated due diligence and risk management programs must meet more stringent criteria than mom-and-pop investors to prove they were misled into buying securities because they’re “big boys” and thus, responsible for their own actions.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.