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New York Attorney General Sues JP Morgan For Fraud Over Mortgage-Backed Securities
Posted on October 1, 2012
Linette Lopez | Oct. 1, 2012, 6:22 PM
Source: Business Insider
This just in from Reuters. New York Attorney General Eric Schneiderman is suing JP Morgan over
mortgage-backed securities. This specifically has to do with Baer
Stearns, the defunct investment bank JPM bought at the height of the
financial crisis.
Here’s the Tweet that let us know:
You can check out the complaint here from Reuters. Here’s part:
Defendants committed multiple fraudulent and deceptive acts in
promoting and selling its RMBS. For example, in publicly filed documents
and in marketing materials. Defendants led investors to believe
that Defendants had carefully evaluated – and would continue to monitor
– the quality of the loans in their RMBS. In fact, Defendants
systematically failed to fully evaluate the loans, largely ignored the
defects that their limited review did uncover, and kept investors in the
dark about both the inadequacy of their review procedures and the
defects in the underlying loans. Furthermore, even when Defendants were
made aware of these problems, they failed to reform their practices or
to disclose material information to investors. As a result, the
loans in Defendants’ RMBS included many that had been made to borrowers
who were unable to repay, were highly likely to default, and did in
fact default in large numbers.
We’ll keep going through this and letting you know what we find.
Related articles
Posted on October 1, 2012
Linette Lopez | Oct. 1, 2012, 6:22 PM
Source: Business Insider
This just in from Reuters. New York Attorney General Eric Schneiderman is suing JP Morgan over
mortgage-backed securities. This specifically has to do with Baer
Stearns, the defunct investment bank JPM bought at the height of the
financial crisis.
Here’s the Tweet that let us know:
You can check out the complaint here from Reuters. Here’s part:
Defendants committed multiple fraudulent and deceptive acts in
promoting and selling its RMBS. For example, in publicly filed documents
and in marketing materials. Defendants led investors to believe
that Defendants had carefully evaluated – and would continue to monitor
– the quality of the loans in their RMBS. In fact, Defendants
systematically failed to fully evaluate the loans, largely ignored the
defects that their limited review did uncover, and kept investors in the
dark about both the inadequacy of their review procedures and the
defects in the underlying loans. Furthermore, even when Defendants were
made aware of these problems, they failed to reform their practices or
to disclose material information to investors. As a result, the
loans in Defendants’ RMBS included many that had been made to borrowers
who were unable to repay, were highly likely to default, and did in
fact default in large numbers.
We’ll keep going through this and letting you know what we find.
Related articles
- Financial Fraud Prosecutions Coming Soozzzzzzzzzzzzzzzzzzz… (news.firedoglake.com)
- Widening JPMorgan CIO Loss Could Be Next ‘Shock’ Event (silverdoctors.com)
- Securitization Fraud Task Force Investigators Promise “Significant Action,” Sometime (news.firedoglake.com)
- Too Big To Jail: Wall Street Executives Unlikely To Face Criminal Charges, Source Says (huffingtonpost.com)
- Yes, Really, Truly, No Joke, That Schneiderman Mortgage Task Force is Gonna Get Someone….Soon! (nakedcapitalism.com)
- JPM’s Woes Grow With New Money Laundering Probe: Remember Bill Murphy Told Us “JP Morgan is FINISHED!” (sgtreport.com)
- Schneiderman Investigating Bain Capital, Amid No News of Any Investigation on Mortgage Fraud Task Force (news.firedoglake.com)
