Daily News: October 3, 2012

A.G. Sues JPMorgan for Fraudulent RMBS Promotions


In his role as co-chair of the Residential Mortgage-Backed Securities Working Group, Attorney General Eric T. Schneiderman announced a Martin Act lawsuit against J.P. Morgan Securities (formerly known as Bear Stearns), JP Morgan Chase Bank, and EMC Mortgage (formerly known as EMC Mortgage Corporation) for making fraudulent misrepresentations and omissions to promote the sale of residential mortgage-backed securities (RMBS) to investors.

According to Schneiderman’s lawsuit, these defendants deceived investors as to the care with which they evaluated the quality of mortgage loans packaged into residential mortgage-backed securities prior to Bear Stearns