JPMorgan Can't Shake MBS Fraud Claims In $300M Ambac Suit

Law360, New York (June 17, 2013, 3:30 PM EDT) -- Ambac Assurance Corp. can pursue fraud claims against JPMorgan Chase & Co. over residential mortgage-backed securities it insured because the deal closed so quickly that the bond insurer might not have had a chance to review the loan files, a New York state judge ruled Monday.

Although JPMorgan argued that Ambac shouldn't have relied on the bank's representations about the quality of the loans because the insurer was allowed to review the underlying loan files, Judge Charles E. Ramos said that it was too soon to...
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