JPMorgan is suing the Federal Deposit Insurance Corp. to recover more than $1 billion tied to its purchase of Washington Mutual when that bank failed in 2008.
In a federal court complaint, the New York bank said that the FDIC failed to honor obligations under the Washington Mutual agreement, and that has subjected JP Morgan to massive liability.
The FDIC became the receiver for Washington Mutual, during the largest bank failure in U.S. history. JP Morgan Chase & Co. said the FDIC then made promises to indemnify or protect the bank against liabilities if it stepped in.
JP Morgan said in a court filing Tuesday that the FDIC then declined to acknowledge that claims against JP Morgan for Washington Mutual's conduct should have been claims against the receivership.
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