JPMorgan's Agreement With FDIC Staves Off Mortgage Suit

Law360, New York (November 3, 2011, 1:38 PM EDT) -- JPMorgan Chase Bank NA on Wednesday won the dismissal of a class action alleging the bank hid ballooning payments from mortgage borrowers when a California federal judge ruled that an agreement with the Federal Deposit Insurance Corp. shielded the bank.

When JPMorgan bought collapsed Washington Mutual in 2008, it assumed tens of thousands of adjustable rate mortgages, including the two at issue in this suit. But the acquisition's fine print shifts any liability stemming from WaMu's conduct to the FDIC, said U.S. District Judge Claudia Wilken,...
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