NY Court Demands JPMorgan Pay $50M In MBS Suit

Law360, Los Angeles (August 26, 2013, 10:51 PM EDT) -- A New York state judge has ordered JPMorgan Chase & Co. to pay a Russian billionaire more than $50 million, finding that an affiliate of the bank was liable for breach of contract for filling his conservative cash-management account with risky mortgage-backed securities.

In an Aug. 21 decision made public Monday, Judge Melvin L. Schweitzer said JPMorgan Investment Management Inc. breached its contract with Leonard Blavatnik by exceeding the 20 percent cap on mortgage-backed securities allowed under its agreement to manage Blavatnik's billion-dollar cash management account, CMMF LLC....
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