JPMorgan is suing the Federal Deposit Insurance Corp. to recover more than $1 billion tied to its purchase of Washington Mutual when that bank failed in 2008.
In a federal court complaint, the biggest U.S. bank said the FDIC failed to honor obligations under the Washington Mutual agreement, and that has subjected JPMorgan to massive liability.
The FDIC became the receiver for Seattle-based Washington Mutual when it collapsed during the height of the financial crisis in September 2008. It was the largest bank failure in U.S. history.
The FDIC brokered the sale of Washington Mutual’s assets to JPMorgan for $1.9 billion. JPMorgan said the FDIC made promises to indemnify or protect the bank against liabilities if it stepped in.
New York-based JPMorgan Chase & Co. said in a court filing Tuesday that the FDIC later declined to acknowledge that government and investors’ claims against JPMorgan for sales of Washington Mutual’s risky mortgage-backed securities should have been claims against the receivership, not the bank.
EU proposes ban on animal cloning
Farm-animal cloning should be banned in the European Union, along with imports of cloned livestock and the sale of food from such animals, the European Commission proposed in a draft law.
The commission, the Brussels-based executive arm of the 28-nation EU, said the proposal addresses worries about animal welfare and other ethical concerns related to use of cloning.
Cloning for now is so expensive that its use for food production isn’t viable, according to the agency.
The EU, with a population of more than 500 million people, produces 20 percent of the world’s pork and 11 percent of its beef and accounts for 30 percent of global cheese exports, data from the United Nations’ Food & Agriculture Organization show.
The commission said surveys show that most EU citizens disapprove of the use of clones for food production, and they do not want to eat meat from animal clones.
Delta phone policy: Hang up, enjoy view
Delta Air Lines won’t allow passengers to make voice calls from its planes.
Right now, federal rules prohibit voice calls on planes. But the government is indicating that it might loosen those rules. If that happens, it could be up to airlines to set their own policies.
On Wednesday, Delta said, in effect, hang up and enjoy the view from 40,000 feet.
CEO Richard Anderson told workers in a memo that the airline will not allow cell calls or Internet-based voice communications on mainline or Delta Connection flights, which are operated by other airlines under contract for Delta.
AMC Entertainment rises in 1st NYSE day
Shares of movie theater operator AMC Entertainment are rising in its first day as a public company.
The stock gained $1.76, or 9.7 percent, to $19.76 in morning trading Wednesday.
AMC Entertainment Holdings Inc. priced the initial public offering of about 18.4 million shares at $18 per share. That’s at the low ended of its projected price range of $18 to $20 per share.
The company raised approximately $331.2 million from the offering. It is giving the underwriters a 30-day option to buy up to 2.6 million more shares.