NY sues JPMorgan over Bear Stearns mortgage securities

New York Attorney General Eric Schneiderman filed a civil fraud lawsuit against JPMorgan Chase & Co over mortgage-backed securities packaged and sold by the former Bear Stearns.

It was the first action to come out of a working group created by President Barack Obama earlier this year to go after wrongdoing that led to the financial crisis.

JPMorgan, which bought Bear Stearns for US$2 a share in March 2008, said in a statement it would contest the allegations.

via Business feed http://www.scmp.com/business/companies/article/1052142/ny-sues-jpmorgan-over-bear-stearns-mortgage-securities