Banque Arabe et Internationale D'Investissement v. Maryland National Bank

JACOBS, Circuit Judge:

In 1988, Maryland National Bank (“MNB”) financed a real estate venture for the conversion of several New York City apartment buildings to cooperative or condominium ownership, and sold participations in that $35 million mortgage loan to other banks. A $10 million participation was sold to BAII Banking Corporation (“BAII”), an American subsidiary of Banque Arabe et Internationale D’lnvestissement (“Banque Arabe”). Ban-que Arabe, as transferee from BAII, asserts (among other things) that MNB fraudulently failed to disclose that the developer was experiencing a regulatory…