JPMorgan Has No Idea What they Bought From The FDIC

Matt Levine of Bloomberg wrote a great piece about how JPMorgan Chase has no idea what WaMu Assets They Bought From The FDIC

You may have heard that the nation’s third largest bank is paying a lot of people billions of dollars to settle those people’s lawsuits over bad mortgages that Washington Mutual sold them back in the day. Some people think that this is unfair to Chase, since it wasn’t selling the bad mortgages,* WaMu was. Why should JPMorgan-Chase pay for the sins of WaMu?

Well, because it bought WaMu, is the reasonable answer. When you buy a company you assume its liabilities. “There are always uncertainties in deals,” notorious bank-hater Jamie Dimon once said. “Our eyes are not closed on this one.” This one being WaMu.**

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