Sunday, March 20, 2011

JPMorgan Chase wants Allstate case heard in federal court

Defense attorneys for JPMorgan Chase Bank want to fight a subprime securities-related lawsuit filed by Allstate in federal court.

Allstate sued JPMorgan Chase (JPM: 45.6301 +2.40%) and its subsidiaries Bear Stearns and Washington Mutual in February accusing them of fraudulently selling Allstate more than $750 million in residential mortgage-backed securities supported by underlying toxic loans.

Attorneys for JPMorgan filed a motion to move the suit out of state court and into the U.S. District Court for the Southern District of New York.

The bank's attorneys argued the Federal Deposit Insurance Corp., which offloaded Washington Mutual's troubled assets to JPMorgan three years ago, is governed by federal law not state law.

Read on.

No comments: