The National Credit Union Administration has filed suit in Federal District Court in Kansas against J.P. Morgan Securities as successor-in-interest to Washington Mutual Bank, alleging violations of federal and state securities laws in the sale of $2.2 billion in mortgage-backed securities to three failed corporate credit unions -- U.S. Central, Western Corporate and Southwest Corporate federal credit unions.
The complaint alleges the firms made numerous misrepresentations and omissions of material facts in the Offering Documents of the securities sold to the failed corporate credit unions. The complaint states underwriting guidelines in the Offering Documents were “systematically abandoned,” and the misrepresentations caused the credit unions to believe the risk of loss was minimal.
Read the press release.
Mr. Leggett, is it on a contingency basis?
ReplyDeletewhat is the status of that investigation Congressman Darrel Issa was doing on NCUA?