Southern District of New York Enjoins Bank from Selling Loan Participation

On January 28, 2010, the United States Court for the Southern District of New York issued a decision in the case of Empresas Cablevisión, S.Z.B. de C.V. v. JPMorgan Chase Bank, N.A. The District Court enjoined JPMorgan Chase Bank N.A. and J.P. Morgan Securities Inc. (collectively, “JPMorgan”) from selling a participation interest to Banco Inbursa of loans made to Empresas Cablevisión, S.Z.B. de C.V. (“Cablevisión”). This decision has implications for parties that purchase and sell loans and for borrowers.  Read More.