Schneiderman Sues JPMorgan Chase; Lawsuit Mirrors Old Cases

Lawsuit Over Deceptive Practices Echoes Past Cases
FILE - In this Nov. 3, 2010 file photo, New York Attorney General-elect Eric Schneiderman gestures while giving his victory speech just past midnight in New York. The New York attorney general's office has hit JPMorgan Chase & Co. with a civil lawsuit, alleging that investment bank Bear Stearns prior to its collapse and subsequent sale to JPMorgan in 2008 perpetrated massive fraud in deals involving billions in residential mortgage-backed securities. (AP Photo/Frank Franklin II, File)
FILE - In this Nov. 3, 2010 file photo, New York Attorney General-elect Eric Schneiderman gestures while giving his victory speech just past midnight in New York. The New York attorney general's office has hit JPMorgan Chase & Co. with a civil lawsuit, alleging that investment bank Bear Stearns prior to its collapse and subsequent sale to JPMorgan in 2008 perpetrated massive fraud in deals involving billions in residential mortgage-backed securities. (AP Photo/Frank Franklin II, File)

Late yesterday, New York Attorney General Eric Schneiderman filed a lawsuit made up of years-old evidence against JPMorgan Chase, over deceptive practices related to the sale of $87 billion in Bear Stearns mortgage-backed securities at the height of the housing bubble. The lawsuit is closely modeled after one brought against the same defendants by the mortgage bond insurer Ambac, a suit written by a current Executive Deputy Attorney General for Economic Justice in Schneiderman’s office.

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