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October 2, 2012

New York Files $20B Fraud Suit Against JPMorgan Chase 
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New York Attorney General Eric Schneiderman has filed a lawsuit against
JPMorgan Chase for alleged fraud in mortgage-backed securities issued by
Bear Stearns. Schneiderman says investors were defrauded around $20
billion in buying packages of pooled mortgages and loans. Bear Stearns
issued the securities before being acquired by JPMorgan Chase during the
financial crisis of 2008. The case is the first against a major U.S.
bank to come out of the Residential Mortgage-Backed Securities Working
Group, a White House-backed task force launched earlier this year to
probe fraud in mortgage-backed securities.

 

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