JPMorgan Chase on Wednesday told a federal court in Wichita, Kansas that National Credit Union Administration’s (NCUA) negligence suit against top executives of WesCorp Federal Credit Union proves that it was the shortcomings of corporate executives – and not any misrepresentations by the Wall Street bank’s sales force in the sale of mortgage-backed securities – that caused the failure of WesCorp and three other corporate credit unions.

“Although the [NCUA] Board now contends that “public information was not sufficiently material to dissuade a reasonable investor from purchasing the MBS, it took exactly the opposite position when it sued the WesCorp directors for ignoring the disclosed risks,” the Wall Street bank argued in a motion to dismiss filed yesterday with the U.S. District Court for the District of Kansas.

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