JPMorgan Chase told a federal court in Wichita, Kan., that it should reject National Credit Union Administration 's (NCUA) claims regarding $1.4 billion of MBS sold to four failed corporate credit unions and dismiss the suit without even allowing for discovery.

The Wall Street bank rebutted NCUA's claims that a recent court ruling in Massachusetts over similar claims brought by MassMutual Life do not carry over to this case–as NCUA asserted last week. “Unlike here, in MassMutual, the court concluded that plaintiffs had conducted a 'subsequent forensic analysis of the loan data,' finding that it had reviewed information such as assessor, DMV, credit and tax records, and loan servicing and mortgage application data,” argued Chase. “Here, in contrast, the [NCUA] Board did not perform any 'forensic analysis of loan data,' it does not rely upon any original confidential witness testimony and its originator-specific allegations are sorely lacking.”

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