NCUA Sues JPMorgan Over $2.2B in Faulty RMBS

Law360, Los Angeles (January 7, 2013, 7:32 PM EST) -- The National Credit Union Administration sued JPMorgan Chase Bank NA in Kansas federal court Friday, accusing its broker-dealer arm WaMu Capital Corp. of misrepresenting the quality of more than $2.2 billion in risky loans it sold to three now-defunct corporate credit unions.

The NCUA, which oversees federal credit unions, alleges JPMorgan and WaMu Capital violated federal and state securities laws by selling nearly 90 triple-A rated loans to three credit unions that they knew were actually below investment grade, ultimately leading to the credit unions’ insolvency....
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