NEW YORK, May 19 (Reuters) - A divided federal appeals courton Thursday revived an FDIC lawsuit accusing several major banksof helping cause the 2009 failure of Colonial BancGroup Inc byselling or underwriting toxic mortgage-backed securities thatthe Alabama lender bought.
By a 2-1 vote, the 2nd U.S. Circuit Court of Appeals in NewYork said the FDIC did not wait too long by waiting until August2012, three years after it was appointed Colonial's receiver, tosue Citigroup Inc, JPMorgan Chase & Co and severalother banks.
The dissenting judge said the three-year clock to sue beganwhen Colonial bought the securities in 2007, and therefore ranout in 2010. (Reporting by Jonathan Stempel in New York; Editing by ChizuNomiyama)