JPMorgan sued by New York over mortgage securities

Obama and his pal JP Morgan CEO Jamie Dimon

Reuters

 – 3 hours ago

NEW YORK (Reuters) - New York Attorney General Eric Schneiderman on Monday filed a lawsuit against JPMorgan Chase & Co (JPM) for fraud over faulty mortgage-backed securities packaged and sold by the former Bear Stearns.The lawsuit alleged a "systematic abandonment of underwriting guidelines" in the selling of home loans that went into securities peddled by Bear Stearns. JPMorgan acquired Bear Stearns in 2008, at the start of the financial crisis.(Reporting by Karen Freifeld; editing by Andrew Hay)