JPMorgan Chase rivals may face government lawsuits claiming
tens of billions of dollars in damages tied to investor losses on mortgage
bonds after New York’s attorney general filed a fraud lawsuit against the
nation’s biggest bank by assets.
A state-federal task force set up this year to investigate
misconduct in the bundling of mortgage loans into securities will bring other
cases, according to New York Attorney General Eric Schneiderman. Investor
losses in the JPMorgan case alone will be “substantially more” than the $22.5
billion cited in his complaint, he said.
“We do expect this to be a matter of very significant
liability, and there are others to come that will also reflect the same quantum
of damages,” Schneiderman said in an interview yesterday with Bloomberg. “We’re
looking at tens of billions of dollars, not just by one institution, but by
quite a few….
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