JPM Unit Sued by Credit Union Regulator

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The National Credit Union Administration has sued a consortium of financial companies, mainly JPMorgan Chase (NYSE: JPM  ) unit J.P. Morgan Securities, alleging the violation of federal and state regulations related to the sale of mortgage-backed securities, the NCUA said in a press release.

The suit, brought in a Kansas federal court, targets the company as the successor-in-interest to Washington Mutual. That firm was acquired by J.P. Morgan Securities in 2008.

The NCUA alleges that a pair of WaMu subsidiaries, as well as other defendants "made misrepresentations in connection with the underwriting and subsequent sale of mortgage-backed securities to U.S. Central, Western Corporate and Southwest Corporate federal credit unions."

The regulator said the companies sold around $2.2 billion worth of MBSes to the credit unions. Its legal action follows a similar one filed last month against JPMorgan Chase, as the successor of Bear Stearns & Co.

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  • Report this Comment On January 04, 2013, at 10:00 PM, nevgreco wrote:

    Everyone is sueing JPM..JJPM should start sueing back for some of the trouble and miss information they got..A lot of insiders made money when Wash.M was bought for so much money..JPM should start sueing back..Or put a halt to this..

  • Report this Comment On January 05, 2013, at 8:21 PM, neamakri wrote:

    nevgreco is right, too many lawsuits. I say find the guilty perpetrators and subject them to public pillory. Or 5 years in federal prison. Or firing squad. I want satisfaction.

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