SDNY COURTHOUSE, April 16 – Webster
Bank, trying to sell itself to Banco Santander, now has a
Federal case against it in the U.S. District Court for the
Southern District of New York. Easthampton Savings Bank
sued Webster for "gross negligence and willful misconduct"
in the managing and servicing of a commercial mortgage
loan that ESB invested in.
The case was initially filed in New
York State court; Webster on April 6 removed it to SDNY,
which Inner City Press covers closely and where it found
the filing, still unassigned.
Meanwhile, amid disputes
between Spain and the administration in Washington,
Santander has applied not only to the Federal Reserve but
also to the Office of the Comptroller of the Currency.
On April 16, Judge John G. Koeltl, to whom
the case was referred, held a conference. Inner City Press
covered it. BankESB's lawyer said Webster's pre-motion
letter disputes facts, so not appropriate for a motion to
dismiss. Webster asked to file a motion in a week; reply
is due May 19, Judge Koeltl said.
The case is Bank ESB v. Webster
Bank, N.A., 1:26-cv-2795 (Koeltl) - 23 pages with
complaint on Patreon here