JPMorgan, RBS Units Sued Over $800M In Risky MBS

Law360, New York (June 20, 2011, 2:55 PM EDT) -- U.S. regulators sued JPMorgan Chase & Co. and Royal Bank of Scotland PLC units in Kansas on Monday, seeking to recover more than $800 million that the banks generated by selling risky mortgage-backed securities to now-failed credit unions.

The National Credit Union Administration filed separate complaints against J.P. Morgan Securities LLC and RBS Securities Inc., accusing both of misrepresenting their residential mortgage-backed securities as safe, when in fact they were dicey investments dependent on loans that "were all but certain to become delinquent or default shortly...
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