New York Sues JP Morgan

On Monday, New York Attorney General Eric Schneiderman filed suit against JP Morgan Chase (NYSE:JPM) alleging fraud for mortgage-backed securities packaged and sold by Bear Stearns – bought by JP Morgan for $2 per share in the spring of 2008. In a statement to Fox Business, a spokesperson for JP Morgan says the firm intends to contest the allegations brought by the attorney general. “We’re disappointed that the NYAG decided to pursue its civil action without ever offering us an opportunity to rebut the claims and without developing a full record – instead relying on recycled claims already made by private plaintiffs,” the spokesperson said. Further, the spokesperson makes clear the allegations brought against the firm have to do with matters of Bear Stearns before it was acquired by JP Morgan Chase. “The NYAG civil action relates to Bear Stearns, which we acquired over the course of a weekend at the behest of the U.S. government. This complaint is entirely about historic conduct by that entity.” JP Morgan said in the statement it intends to work with and is cooperating with members of President Obama’s Residential Mortgage Backed Securities Group – a task force aimed at holding accountable those who brought about the latest financial crisis.