JPMorgan Close to Accord With FDIC, Deutsche Bank in WaMu Suitby
JPMorgan Chase & Co. is close to resolving litigation that followed its takeover of Washington Mutual Inc.’s banking operations during the height of the financial crisis, the bank said Wednesday.
Deutsche Bank AG had sued JPMorgan and the Federal Deposit Insurance Corp. over more than $6 billion in securities backed by flawed WaMu mortgages. JPMorgan and the FDIC each said the other is responsible to pay investors’ claims. The three parties have now signed a term sheet to resolve the litigation, New York-based JPMorgan said in its quarterly regulatory filing. The agreement is subject to FDIC board approval, the bank said.