John Hancock Targets JPMorgan Over Toxic RMBS

Law360, New York (January 23, 2012, 11:18 PM EST) -- John Hancock Life Insurance Co. sued several units of JPMorgan Chase & Co. on Friday, accusing the bank of misleading investors into buying toxic residential mortgage-backed securities.

In a complaint filed in New York state court, the insurance company accuses JPMorgan and now-defunct investment banks Bear Stearns & Cos. Inc. and Washington Mutual Inc. of failing to perform due diligence to make sure that shoddily underwritten mortgages were not included in the securities trusts they underwrote and sold.

And despite knowing that a large portion of...
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