JPMorgan seeks more than $1 billion from FDIC over WaMu claims

JPMorgan Chase & Co (JPM) sued the Federal Deposit Insurance Corporation in federal court on Tuesday, saying the agency owes it more than $1 billion in compensation for not assuming legal claims arising from its acquisition of Washington Mutual’s assets after its 2008 implosion. JPMorgan bought Washington Mutual’s banking operations in an FDIC-arranged deal at the height of the financial crisis, a little more than a week after Merrill Lynch agreed to sell itself to Bank of America Corp (BAC) and Lehman Brothers filed for bankruptcy. Under the terms of the deal, an FDIC receivership “broadly agreed to indemnify JPMC both for liabilities JPMC did not assume and for numerous other matters,” the bank claimed in the 24-page lawsuit, filed in U.S. District Court for the District of Columbia.


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