JPMorgan Chase & Co. asked a federal judge to order the Federal Deposit Insurance Corp. to cover any costs or liabilities in a bondholder case stemming from the bank's takeover of Washington Mutual Bank, Bloomberg News reported yesterday. JPMorgan said that under the terms of a 2008 agreement with the FDIC it should not be on the hook for any damages, attorneys' fees or court costs in a lawsuit filed by Washington Mutual bondholders accusing the bank of being involved in a scheme to deprive them of their investments. When it picked up Washington Mutual banking operations in September 2008, JPMorgan "assumed only certain defined liabilities," which did not include WaMu’s bond obligations, according to the court filing. WaMu’s debt obligations -- including the bonds at issue in the case -- were liabilities that remained with the FDIC, the bank said.
