JPMorgan Chase late last week rebutted federal claims that it misled four now defunct corporate credit unions into buying $1.5 billion of risky MBS and pointed the finger — as National Credit Union Administration's (NCUA) own internal reviews have — at the management of the failed corporates and at NCUA's own examiners.

“Despite warnings from the offering documents, the news media and even the (NCUA) Board itself, the Credit Unions made the informed decision to plunge the majority of their assets into residential mortgage-backed securities at the height of the housing bubble,” the Wall Street bank said Friday in documents asking a federal court to dismiss an NCUA suit seeking damages for the failed investments. “That investment strategy-which even the (NCUA) Board has condemned as “aggressive”, “excessive” and “unreasonable”—backfired when the housing bubble burst.

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