The U.S. credit union regulator sued JPMorgan and Washington Mutual late Friday over $2.2 billion in mortgage securities sold to credit unions that collapsed because of losses from the securities.
The suit is the third the regulator, the National Credit Union Administration, has filed against JPMorgan involving mortgage losses, and the second in the past month.
In December, it sued the bank over $3.6 billion in securities sold by Bear Stearns, which JPMorgan acquired during the financial crisis. In June 2011, the NCUA sued over some $1.4 billion in securities in which JPMorgan was the underwriter and seller. Both suits are still pending.
JPMorgan bought the assets of Washington Mutual in 2008 after it failed and was seized by regulators.
In Friday's lawsuit, the NCUA accused the bank of making misrepresentations in underwriting and selling mortgage-backed securities to U.S. Central, Western Corporate and Southwest Corporate federal credit unions.
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