JPMorgan Chase & Co. sued the Federal Deposit Insurance Corp. claiming the agency is responsible for more than $1 billion in liabilities faced by the bank as a result of its 2008 takeover of Seattle-based Washington Mutual.
JPMorgan said in the complaint filed today in federal court in Washington D.C. that the FDIC agreed to shield it from liability from lawsuits claiming failures by Washington Mutual. JPMorgan said it took on only limited liabilities in its purchase of the Seattle-based bank’s assets.
“The FDIC’s indemnification obligations that are the subject of this action are a matter of contract,” the New York- based bank said in its complaint. “They are promises that the FDIC made to JPMC to induce JPMC” to buy Washington Mutual’s assets, it said.
JPMorgan said it is the subject of numerous lawsuits, including claims by buyers of securities backed by faulty Washington Mutual residential loans. The bank is seeking unspecified damages and a court order declaring that the FDIC is responsible for the claims against Washington Mutual.
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Greg Hernandez, an FDIC spokesman, didn’t immediately return voice-mail and e-mail messages after regular business hours seeking comment on the bank’s allegations. Brian Marchiony, a JPMorgan spokesman, declined to comment on the case.
The case is JPMorgan Chase Bank N.A. v. Federal Deposit Insurance Corp., 13-cv-01997, U.S. District Court, District of Columbia (Washington).