JPMorgan, FDIC, Deutsche Bank finalize settlement in WaMu mortgage suit

JPMorgan Chase’s legal battle with the Federal Deposit Insurance Corp. andDeutsche Bank AG over its acquisition of Washington Mutual’s banking operations is finally over, closing the door on issues dating back to the financial crisis.

According to an 8-K filing from JPMorgan Chase, “As previously disclosed, JPMorgan Chase Bank signed a term sheet with Deutsche Bank and the FDIC to resolve pending litigation brought by DBNTC against the FDIC, in its capacity as receiver for Washington Mutual Bank and in its corporate capacity, and JPMorgan Chase Bank, as defendants, relating to alleged breaches of certain representations and warranties given by certain WMB affiliates in connection with mortgage securitization agreements.”

The filing also stated it resolved “JPMorgan Chase’s outstanding indemnification claims pursuant to the terms of the Purchase & Assumption Agreement between JPMorgan Chase Bank and the FDIC relating to JPMorgan Chase’s purchase of substantially all of the assets and certain liabilities of Washington Mutual Bank.”

In early August, JPMorgan’s quarterly regulatory filing revealed that the settlement was nearing an end.

Read on.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s