A Manhattan federal judge last week rebuffed a motion by a number of major lenders to dismiss a bid by the Federal Deposit Insurance Corp. against the firms in connection with $388 million of non-agency MBS sold to the now-defunct Colonial Bank. The FDIC filed its complaint in August 2012, alleging that the defendants – including JPMorgan, CitiGroup, Ally Securities, First Horizon, Credit Suisse, Deutsche Bank, Merrill Lynch and Wells Fargo – placed poor-quality loans in the 11 underlying residential MBS and then misled investors by marking them as safe investments. Montgomery, AL-based Colonial Bank failed...