Ambac Goes After JPMorgan Over $200M In RMBS Losses

Law360, New York (April 2, 2012, 2:25 PM EDT) -- Bond insurer Ambac Assurance Corp. sued JPMorgan Chase & Co. in New York state court Friday, alleging that Bear Stearns & Co. Inc.'s fraudulent marketing of residential mortgage-backed securities cost the insurer $200 million.

Ambac, recently given the go-ahead to emerge from bankruptcy, told the New York Supreme Court in New York County that Bear Stearns, which was acquired by JPMorgan in 2008, knowingly induced Ambac to insure RMBS while concealing the weakness of the underlying mortgage loans as part of what Ambac calls the “Bear...
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