The New York attorney general’s office has hit JPMorgan Chase with a civil lawsuit, alleging that Bear Stearns perpetrated massive fraud related to residential mortgage-backed securities that it sold prior to its 2008 collapse and subsequent sale to the New York bank.
New York Attorney General Eric T. Schneiderman alleges that Bear Stearns led investors to believe that the loans in its RMBS portfolio had been carefully evaluated and would be continuously monitored. But Schneiderman alleges that Bear Stearns failed to do either.
