Conversation starters
Most popular
Bonneville Seattle is raising funds for the construction of a second Fisher House at Joint Base Lewis-McChord in Tacoma and we need your help.US agency sues JPMorgan over WaMu mortgage bonds
January 4, 2013 @ 4:47 pm
WASHINGTON (AP) - Federal regulators have sued JPMorgan Chase & Co. over the sale of mortgage securities that contributed to the collapse of three credit unions.
The National Credit Union Administration's lawsuit alleges that Washington Mutual Bank gave a false picture of $2.2 billion in risky mortgage securities it sold to the three wholesale credit unions. JPMorgan acquired the failed Washington Mutual in 2008.
The agency says in the lawsuit filed Friday in federal court in Kansas that Washington Mutual misrepresented how risky the securities were and omitted key facts in sales documents.
It was the agency's third lawsuit against JPMorgan over losses from mortgage securities. It has also sued other major banks including Barclays, Goldman Sachs and Credit Suisse.
JPMorgan spokesman Joseph Evangelisti declined comment.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.