JPMorgan Unit Sued Over $404M Bear Stearns MBS Loss

Law360, New York (June 7, 2011, 7:43 PM EDT) -- Bond insurer Syncora Guarantee Inc. sued Bear Stearns & Co. Inc. successor J.P. Morgan Securities LLC in New York state court Monday, alleging Bear Stearns tricked Syncora into insuring a group of toxic mortgage-backed securities that lost $404 million.

In a complaint filed in New York Supreme Court in Manhattan, Syncora accuses Bear Stearns & Co. Inc., later purchased by JPMorgan Chase & Co. in a taxpayer-financed deal, of lying about its relationship with the originator of the mortgages and about its protocols for controlling which...
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