JPMorgan sued by New York Attorney General over mortgage-backed securities

http://www.telegraph.co.uk/finance/financial-crime/9580405/JPMorgan-sued-by-New-York-Attorney-General-over-mortgage-backed-securities.html

It was the first action to come out of a working group created by President Barack Obama to go after alleged wrongdoing in the financial crisis, Reuters reported.

JPMorgan, which bought one-time rival Bear Stearns for $2 a share in March 2008, said in a statement it intended to contest the allegations.

The lawsuit alleged a “systematic abandonment of underwriting guidelines” in the selling of home loans that went into securities peddled by Bear Stearns.

In its statement, JPMorgan noted that the allegations concern actions by Bear Stearns before it was acquired by JPMorgan.

“The NYAG civil action relates to Bear Stearns, which we acquired over the course of a weekend at the behest of the US Government. This complaint is entirely about historic conduct by that entity,” the statement said.

Mr Schneiderman, a co-chair of the task force, told Reuters on September 20 his office would take action shortly and that he expected his federal counterparts on the task force to do so as well.

The Residential Mortgage-Backed Securities Working Group was formed to probe the pooling and sale of risky mortgages in the run-up to the 2008 financial crisis.

Mr Obama, who is scheduled to debate with his Republican rival Mitt Romney on Wednesday night, said in January he was creating the group to “hold accountable those who broke the law” and “help turn the page on an era of recklessness”.

The task force includes the Justice Department, the Securities and Exchange Commission, the Department of Housing and Urban Development and the Internal Revenue Service.

———-

arrest dimon now for crimes against humanity..

401

About these ads

~ by seeker401 on October 5, 2012.

2 Responses to “JPMorgan sued by New York Attorney General over mortgage-backed securities”

  1. Don’t hold your breath …………

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
Follow

Get every new post delivered to your Inbox.

Join 958 other followers

%d bloggers like this: