JPMorgan rivals face billions in damages after New York fraud caseSubmitted by Bob-45 on Thu, 10/04/2012 - 06:55
David McLaughlin, Bloomberg News | Oct 3, 2012 5:12 PM ET | Last Updated: Oct 3, 2012 5:20 PM ET
JPMorgan Chase & Co.’s 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 US$22.5-billion cited in his complaint, he said.
We’re looking at tens of billions of dollars, not just by one institution, but by quite a few.