Syncora Didn't Evaluate Risky MBS, JPMorgan Says

Law360, New York (April 25, 2013, 7:08 PM EDT) -- Monoline insurer Syncora Guarantee Inc. couldn't blame JPMorgan Chase & Co. for losing $94 million insuring mortgage-backed securities when it insured the deal it knew was failing "without cracking a single loan file" to evaluate the loans, the bank's attorney told a New York state judge Thursday.

The securities that Syncora had insured where resecuritized from an earlier securitization, meaning that the mortgages had been pooled together a year before and Syncora was simply agreeing to "rewrap" the failing securities in exchange for extra protections, according...
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