JPMorgan Wants FDIC Coverage In WaMu Bondholder Suit

Law360, New York (January 7, 2013, 7:11 PM EST) -- The Federal Deposit Insurance Corp. must indemnify JPMorgan Chase & Co. for allegations brought against it by several insurers, bondholders for now-defunct Washington Mutual NA who claim JPMorgan engineered WaMu's downfall to purchase it cheaply, the bank told a Washington federal court Monday.

According to JPMorgan's cross-claim, the FDIC, as receiver for the failed bank, is solely responsible for dealing with the insurers' claims that it had unlawfully allowed JPMorgan to snap up WaMu's most valuable assets at a massive discount while avoiding obligations to bondholders,...
To view the full article, register now.