JPMorgan Can't Dodge Suit Over Alleged RMBS Misconduct

Law360, New York (February 28, 2013, 2:04 PM EST) -- A New York federal judge on Tuesday explained his refusal to dismiss a suit accusing JPMorgan Chase Bank NA, Bear Stearns & Co. Inc. and Washington Mutual Bank NA of intentionally securitizing defective mortgages, citing allegations of the banks' “pervasive” misconduct in failing to follow proper underwriting standards.

U.S. District Judge Jed Rakoff said that a reasonable fact-finder could infer that the banks sold defective amounts of loans underlying residential mortgage-backed securities to plaintiff Dexia SA/NV, citing public reports, government testimony and confidential witnesses that adequately...
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