NEW YORK ATTORNEY GENERAL SUES JPMORGAN FOR FRAUD OVER MORTGAGE BACKED SECURITIES

[Coexist]

This just in from Reuters. New York Attorney General Eric Schneiderman is suing JP Morgan over mortgage-backed securities. This specifically has to do with Baer Stearns, the defunct investment bank JPM bought at the height of the financial crisis.

Read more: http://www.businessinsider.com/ny-ag-sues-jp-morgan-for-fraud-over-mbs-2012-10#ixzz285cicc4i

http://www.cnbc.com/id/49248050

New York Attorney General Eric Schneiderman on Monday filed a lawsuit against JPMorgan Chase for fraud over faulty mortgage-backed securities packaged and sold by the former Bear Stearns.

The lawsuit alleged a "systematic abandonment of underwriting guidelines" in the selling of home loans that went into securities peddled by Bear Stearns.

[dkf]

1. The purchase of Bear was done as a favor to the Fed and Treasury.

http://www.nytimes.com/2008/03/17/business/17bear.html?pagewanted=all

The deal for Bear, done at the behest of the Fed and the Treasury Department, punctuates the stunning downfall of one of Wall Street’s biggest and most storied firms. Bear had weathered the vagaries of the markets for 85 years, surviving the Depression and a dozen recessions only to meet its end in the rapidly unfolding credit crisis now afflicting the American economy.

[rfranklin]

2. And you will not see one high level exec go to jail...

or even suffer any financial penalty. The stockholders will pay the price. And the golden parachutes and bloated bonuses will keep flowing.

[dkf]

3. Bear Stearns execs already got the heave ho.

[rfranklin]

4. So who committed the fraud?...

someone has to be responsible.

[dkf]

5. The company already went down.

Now they want to get the crew who bought Bear at the request of the Fed? Does that make sense?

If they want to go after JP Morgan go after their own RMBS.