JPMorgan Chase CEO Jamie Dimon’s purchase of Bear Stearns is
coming back to haunt him four years later.
JPMorgan yesterday was sued by the New York Attorney General
for an alleged wide-ranging mortgage fraud run by Bear Stearns in 2006 and
2007. The defunct investment bank
deceived investors in mortgage securities — about loan defects, its subpar loan
reviews and other shortcomings — leading to losses of roughly $22.5 billion. Dimon led the acquisition of Bear Stearns in
2008.
The lawsuit, filed in Manhattan state court, is the first
case that has been filed against a big bank as part of a new mortgage working
group formed by President Obama last year….
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