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,...
To view the full article, register now.

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.