JPMorgan Chase & Co. won a legal battle in its effort to avoid billions of dollars in potential liabilities from its purchase of Washington Mutual Inc.’s banking operations during the financial crisis, the Wall Street Journal reported today. A U.S. District Court judge in Washington, D.C., ruled yesterday that the Federal Deposit Insurance Corp. must shoulder certain legal claims stemming from decisions that Washington Mutual made before JPMorgan bought the business in 2008 at the behest of regulators. JPMorgan and the FDIC have fought for years over who is ultimately liable for claims that arose from the failed Seattle thrift. The bank has said the FDIC receivership that liquidated Washington Mutual in 2008 should pay any claims. The FDIC has countered that JPMorgan is responsible. JPMorgan bought the business for $1.88 billion during some of the most tumultuous hours of the financial crisis.
