FDIC Wins Bid To Toss WaMu Mortgage Kickback Suit

Law360, New York (June 30, 2011, 2:01 PM EDT) -- The government receiver for bankrupt Washington Mutual Bank NA on Tuesday won the dismissal of a putative class action in Pennsylvania accusing the failed bank of collecting kickbacks in return for referring borrowers to certain private mortgage insurance providers.

In granting the Federal Deposit Insurance Corp.'s motion to dismiss, U.S. District Judge Thomas N. O'Neill Jr. concluded that the Financial Institutions Reform, Recovery and Enforcement Act of 1989 “clearly prohibits” the plaintiffs from seeking statutory penalties, including punitive damages, against the FDIC as receiver.

“The primary...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

ALEXANDER et al v. WASHINGTON MUTUAL, INC. et al


Case Number

2:07-cv-04426

Court

Pennsylvania Eastern

Nature of Suit

Other Statutes: Other Statutory Actions

Judge

THOMAS N. ONEILL, JR

Date Filed

October 22, 2007

Law Firms

Companies

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.