J. P. Morgan

FHLBP Claims Dismissed In Part

On November 29, 2010, Judge R. Stanton Wettick Jr. of the Court of Common Pleas of Allegheny County, in Pittsburgh, Pennsylvania, decided motions to dismiss three RMBS actions in which the Federal Home Loan Bank of Pittsburgh (FHLBP) alleged misrepresentations by various J.P. Morgan and Countrywide affiliates and three rating agencies (Moody’s, S&P and Fitch). The court dismissed all claims asserted against the rating agencies except for state law fraud claims. The court sustained a variety of claims against the J.P. Morgan and Countrywide defendants, however, and rejected their argument, relying on the Fifth Circuit’s decision in Lone Star Fund V (U.S.) v. Barclays Bank, PLC, 594 F.3d 383 (5th Cir. 2010), that the offering documents’ disclosure of a sole “repurchase or cure” remedy for non-conforming mortgage loans demonstrated that there was no misrepresentation. Decision.

Fed Money Market and Commercial Paper Programs

The Federal Reserve Board announced on October 21 the creation of a Money Market Investor Funding Facility through which private special purpose vehicles will be established to buy money market investments from money market funds with funds provided by the Federal Reserve Bank of New York.  Working closely with the Federal Reserve, J. P. Morgan structured and designed the MMIFF with Orrick, Herrington & Sutcliffe LLP acting as counsel to J. P. Morgan throughout the process.  Orrick Structured Finance Alert.  The Federal Reserve Board will launch its Commercial Paper Funding Facility on Monday, October 27 to finance the purchase of commercial paper from eligible issuers. Interested issuers must register two business days prior to participation in the Facility.  New York Fed CPFF Issuer Registration Process