JPMorgan, UBS May Try Mediator in $2 Billion Mortgage Lawsuit
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A judge handling a $2 billion lawsuit against banks including JPMorgan Chase & Co. (JPM) and UBS AG (UBSN) brought by the former Thornburg Mortgage invited their lawyers to file statements on the possible appointment of a mediator to resolve the dispute, according to a federal court filing in Baltimore.
The judge, after holding a hearing on the banks’ requests for dismissal of the suit, gave no deadline for the “brief statements” about a mediator although he said “quickly advised” in a handwritten note filed in court May 1.
The trustee for what is now TMST Inc. accused the banks, including Credit Suisse Group AG and Royal Bank of Scotland Plc, of extracting more than $700 million of margin and interest payments from the former Thornburg by making “unjustified” margin calls, speeding its failure.
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