U.S. agency sues JPMorgan over WaMu mortgage bonds
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.
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.
Those honest banksters at it again. A little false picture here, a little drug money laundry operation over there. A little commodities manipulation and Wall Street. Creates a diversity of investments based on the "fraud" business model. Yes folks fraud is now a legitimate business model for the banksters. Keep that in mind the next time you pay a bank fee. Also no banker ever goes to jail they only pay a fine that is only a fraction of the profit earned.