FDIC Seeks Dismissal Of WMI Reconveyance Actions

Law360, New York (April 12, 2011, 3:27 PM EDT) -- The Federal Deposit Insurance Corp., as receiver for bankrupt Washington Mutual Inc., asked a California federal judge Monday to throw out proposed class action lawsuits seeking damages for the belly-up bank's failure to properly record reconveyances of home loans.

Since WaMu no longer exists, the FDIC told the U.S. District Court for the Central District of California, the suits are now governed by the the Financial Institutions Reform Recovery and Enforcement Act of 1989, which bars the punitive relief they seek.

More than five years after...
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