Obama’s Mortgage Fraud Task Force Sues JPMorgan Chase

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From ThinkProgress:

New York Attorney General Eric Schneiderman (D) has filed a civil lawsuit against JP Morgan Chase alleging “widespread fraud in the sale of mortgage-backed securities,” the Wall Street Journal reports. The suit is the first action brought by the Obama administration’s mortgage fraud task force, which Schneiderman chairs.

The residential mortgage-backed securities (RMBS) in question were actually tied to Bear Stearns, the failed financial institution that JP Morgan acquired before the 2008 financial crisis.

According to the suit, filed in New York state court, the bank was “aware that many of their loan originators were selling defective loans but continued to buy and securitize those loans,” and, similarly to the “shitty deals” peddled by Goldman Sachs bankers, had openly touted the bad packages they were selling.

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