{"id":5406,"date":"2013-02-11T00:00:00","date_gmt":"2013-02-11T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/02\/jp_morgan_sued_by_dexia_in_17b"},"modified":"2022-05-02T11:09:21","modified_gmt":"2022-05-02T16:09:21","slug":"jp-morgan-sued-by-dexia-in-17b","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/jp-morgan-sued-by-dexia-in-17b\/","title":{"rendered":"JP Morgan Sued by Dexia in $1.7B MBS Lawsuit"},"content":{"rendered":"\n

Dexia SA (DEXB) is suing JP Morgan Chase & Co. (JPM ) <\/a>for over $1.7 billion. In its mortgage-backed securities lawsuit<\/a>, the Belgian-French bank contends that the loans underlying the securities that the US bank sold it were riskier than what they were represented to be. <\/p>\n

JP Morgan and its companies, Washington Mutual (WM) and Bear Stearns Co., are accused of \u201cegregious\u201d fraud for allegedly making and selling mortgage bonds backed by loans that they knew were \u201cexceptionally bad.\u201d Dexia claims it sustained substantial losses.<\/p>\n

According to The New York Times, there are a slew of employee interviews and internal e-mails related to this MBS lawsuit that talk about how the three firms disregarded quality controls and problems\u2014perhaps even concealing the latter\u2014in order to make a profit from these mortgages that were packaged into complex securities. They are accused of seeking to avail of the mortgage-backed securities demand during the housing boom even as doubts began to arise about whether or not these investments were good quality. Court filings report that JPMorgan would get mortgages from lenders that didn\u2019t have stellar records, assigning Washington Mutual and American Home Mortgage a \u201cpoor\u201d grade on its \u201cinternal \u2018due diligence scorecard.\u2019\u201d The loans were then swiftly sold off to investors. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Dexia SA (DEXB) is suing JP Morgan Chase & Co. (JPM ) for over $1.7 billion. In its mortgage-backed securities lawsuit, the Belgian-French bank contends that the loans underlying the securities that the US bank sold it were riskier than what they were represented to be. JP Morgan and its companies, Washington Mutual (WM) and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3958,3757],"tags":[],"class_list":["post-5406","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-jp-morgan-chase","category-mortgagebacked-securities"],"yoast_head":"\nJP Morgan Sued by Dexia in $1.7B MBS Lawsuit — Investor Lawyers Blog — February 11, 2013<\/title>\n<meta name=\"description\" content=\"Dexia SA (DEXB) is suing JP Morgan Chase & Co. (JPM ) for over $1.7 billion. 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