A federal judge ruled that the Federal Deposit Insurance Corp. (FDIC) has to face a $10 billion lawsuit tied to the failure of Washington Mutual Bank, Reuters reported. The judge refused the FDIC’s request to dismiss the lawsuit brought by Deutsche Bank National Trust Co. regarding bad mortgages that were securitized by Washington Mutual, which was seized by the Office of Thrift Supervision in September 2008 in the biggest bank failure in U.S. history. The FDIC was appointed receiver and immediately sold the bank to JPMorgan Chase & Co for $1.9 billion. The FDIC argued it should be dismissed from the lawsuit and Deutsche Bank should bring its claims against JPMorgan, which assumed WaMu’s liabilities as well as assets.