German Bank Confronts JPMorgan Over $2.1B In MBS

Law360, New York (November 22, 2011, 3:36 PM EST) -- German bank Bayerische Landesbank sued JPMorgan Chase & Co. in New York state court on Monday for alleged fraud in the sale of nearly $2.1 billion in residential mortgage-backed securities.

BayernLB argues in its complaint that JPMorgan and subsidiaries of Bear Stearns Cos. Inc. and Washington Mutual Bank, both of which JPMorgan acquired in 2008, concealed the truth about the poor quality of the loans behind those securities and provided false information to credit-rating agencies to secure investment-grade ratings.

“This misconduct has resulted in astounding rates...
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