JPM Unit Sued by Credit Union Regulator
Jan 4th 2013 7:51PM
Updated Jan 7th 2013 11:34AM
The National Credit Union Administration has sued a consortium of financial companies, mainly JPMorgan Chase 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.
The article JPM Unit Sued by Credit Union Regulator originally appeared on Fool.com.Eric Volkman has no position in JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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