Ambac Sues JPMorgan For $1B Over Subprime Crisis

Law360, New York (May 6, 2009, 12:00 AM EDT) -- An Ambac Financial Group Inc. subsidiary is reportedly seeking $1 billion in damages from JPMorgan Chase & Co., claiming the firm made improper investments in subprime and residential mortgage-backed securities.

In filings with the Supreme Court of the State of New York, Ambac Assurance UK Ltd. claims that JPMorgan Investment Management Inc. violated its investment agreement with Ambac. The subsidiary also accuses JPMorgan of breach of fiduciary duty and gross negligence, according to Reuters, which obtained a copy of the filing.

JPMorgan managed $1.65 billion of...
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