adminDexia had sued JP Morgan, the biggest US bank, to recoup losses on US$1,6 billion in 65 residential mortgage investments, alleging the US bank and its affiliates had duped it into buying the troubled securities.
But Judge Jed Rakoff on Tuesday dismissed the Dexia claims without citing his reasons, the Times said, calling it a significant victory for JP Morgan.
Rakoff allowed another plaintiff, Dexia’s former US unit FSA Asset Management, to continue to pursue its claims on losses of more than US$5 million, the report said.
The ruling could have implications for another suit brought against US banks by the Federal Housing Finance Agency over the sale of dubious mortgage securities, including some of the same ones cited in the Dexia case.
Dexia lost US$774 million on its investments, the Times said, citing an analysis of court records. -AFP.
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