Wednesday, August 6
LOS ANGELES (AP) — A judge has thrown out a lawsuit filed by Los Angeles against the nation's biggest bank, JPMorgan Chase & Co., over its lending practices.
City News Service says the federal judge ruled Tuesday that LA can't hold the bank responsible for claims involving Washington Mutual — the lender that JP Morgan bought in 2008.
However, the judge says LA could amend the lawsuit and try again.
The city attorney's suit, filed in May, alleged that JPMorgan steered black and Latino customers into predatory home loans they couldn't afford — triggering about 200,000 foreclosures that damaged property values and cost the city money.
The city files similar suits in December against Bank of America, Wells Fargo and Citigroup. They've all denied the allegations.