JPMorgan Chase Sues FDIC for More than $1 Billion
JPMorgan is suing the Federal Deposit Insurance Corp. to recover more than $1 billion. It says the FDIC failed to make good on the promises it made to induce the bank to buy Washington Mutual when it failed in 2008.
The New York bank says in a federal lawsuit that the FDIC’s failure to honor obligations under the Washington Mutual agreement has subjected JP Morgan to massive liability.
The FDIC became the receiver for Washington Mutual, during the largest bank failure in U.S. history. JP Morgan Chase & Co. says the FDIC then declined to acknowledge that claims against JP Morgan for Washington Mutual’s conduct should have been claims against the receivership.
The FDIC did not immediately return a call seeking comment from The Associated Press early Wednesday.