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Suit Alleges Misconduct by Bear Stearns on Mortgage Securities
Source: New York Times
Suit Alleges Misconduct by Bear Stearns on Mortgage Securities
By GRETCHEN MORGENSON
Published: October 1, 2012
The federal mortgage task force that was formed in January by the Justice Department filed its first complaint against a big bank on Monday, citing a broad pattern of misconduct in the packaging and sale of mortgage securities during the housing boom.
Carolyn Kaster/Associated Press
The suit was brought in New York State court by Eric T. Schneiderman, the state attorney general, who is also a co-chairman of the Residential Mortgage-Backed Securities Working Group.
The civil suit against Bear Stearns & Company, now a unit of JPMorgan Chase, was brought in New York State court by Eric T. Schneiderman, the state attorney general, who is also a co-chairman of the task force, known as the Residential Mortgage-Backed Securities Working Group.
The complaint contends that Bear Stearns and its lending unit EMC Mortgage defrauded investors who purchased mortgage securities packaged by the companies from 2005 through 2007. The firms made material misrepresentations about the quality of the loans in the securities, the lawsuit said, and ignored evidence of broad defects among the loans that they pooled and sold to investors.
Read more: http://www.nytimes.com/2012/10/02/business/suit-accuses-jpmorgan-unit-of-broad-misconduct-on-mortgage-securities.html?hp&_r=0
By GRETCHEN MORGENSON
Published: October 1, 2012
The federal mortgage task force that was formed in January by the Justice Department filed its first complaint against a big bank on Monday, citing a broad pattern of misconduct in the packaging and sale of mortgage securities during the housing boom.
Carolyn Kaster/Associated Press
The suit was brought in New York State court by Eric T. Schneiderman, the state attorney general, who is also a co-chairman of the Residential Mortgage-Backed Securities Working Group.
The civil suit against Bear Stearns & Company, now a unit of JPMorgan Chase, was brought in New York State court by Eric T. Schneiderman, the state attorney general, who is also a co-chairman of the task force, known as the Residential Mortgage-Backed Securities Working Group.
The complaint contends that Bear Stearns and its lending unit EMC Mortgage defrauded investors who purchased mortgage securities packaged by the companies from 2005 through 2007. The firms made material misrepresentations about the quality of the loans in the securities, the lawsuit said, and ignored evidence of broad defects among the loans that they pooled and sold to investors.
Read more: http://www.nytimes.com/2012/10/02/business/suit-accuses-jpmorgan-unit-of-broad-misconduct-on-mortgage-securities.html?hp&_r=0
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