Aljazeera – US federal regulators have launched a lawsuit against financial firm JP Morgan Chase & Co over the sale of risky mortgage securities that contributed to the collapse of three credit unions. The National Credit Union Administration’s (NCUA) lawsuit, filed on Friday, alleges that the country’s largest bank misled US Central, Western Corporate and Southwest Corporate federal credit unions into buying $2.2b in risky mortgage securities that caused major financial losses. The three unions became insolvent due to the losses and were placed in NCUA conservatorship, the agency said. “The damage caused by the actions of firms like Washington Mutual has been extremely expensive to contain and repair,” NCUA board chairman Debbie Matz said in a statement announcing the lawsuit. Read Article
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