A U.S. district court judge in California has denied a motion by JPMorgan Chase Bank to dismiss a lawsuit that alleges the bank illegally reduced a couple's home equity line of credit.

Chase argued that the plaintiffs, Jeffrey Schulken and Jenifer Schulken, are former customers of Washington Mutual and they should sue the Federal Deposit Insurance Corp. (FDIC) — which approved Chase's acquisition of WaMu — not Chase. But the judge sided with the Schulkens. According to the plaintiffs' attorney Jay Edelson,

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