NY Attorney General Says More Suits Will Follow JPMorgan |
| Bloomberg - Oct 2, 2012 |
The New York lawsuit over mortgage- backed securities against JPMorgan Chase & Co. (JPM), the biggest U.S. bank, will serve as a template for suits against other issuers, state Attorney General Eric Schneiderman said.
Schneiderman alleged that the Bear Stearns business that JPMorgan bank took over in 2008 deceived mortgage-bond investors about the defective loans backing securities they bought, leading to “monumental losses,” according to a complaint filed yesterday in New York State Supreme Court.
The Bear Stearns mortgage unit packaged $212 billion in mortgage bonds from 2003 through 2006, according to the complaint. Losses on $87 billion of those bonds packaged during just two of those years total $22.5 billion so far, it estimated. Schneiderman said he wants the bank to disgorge all money it obtained in connection with or as a result of the alleged fraud.
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- Posted: 2012-10-02 16:22:16
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