German Bank Targets JPMorgan Units Over $159M In MBS

Law360, New York (September 1, 2011, 7:14 PM EDT) -- Germany's HSH Nordbank AG on Wednesday sued JPMorgan Chase & Co. units over $159 million in mortgage-backed securities, accusing the financial services giant of misrepresenting how the loans were issued.

The loans turned out to be a much riskier investment than JPMorgan had presented, according to a summons notice HSH Nordbank filed in New York court. An analysis of the loans behind the securities showed that they posed a greater credit risk and were more prone to default than JPMorgan had led the German Bank to...
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