Judge Keeps FDIC In $10B Suit Over WaMu Loans

Law360, New York (August 23, 2011, 8:25 PM EDT) -- A federal judge in Washington last week refused to let the Federal Insurance Deposit Corp. exit a Deutsche Bank AG unit's $10 billion suit over bad mortgage loans that Washington Mutual Bank NA issued before federal regulators seized the troubled bank.

Deutsche Bank National Trust Co., serving as a trustee for securitized groups of home loans, in 2009 sued the FDIC, WaMu's receiver, and J.P. Morgan Chase & Co., which acquired the bank. The suit alleges that WaMu misrepresented loans that failed to meet standards laid...
To view the full article, register now.