NATURE OF THE ACTION

1. In mid-2006, Bear Stearns induced investors to purchase, and Ambac as a financial guarantor to insure, securities that were backed by a pool of mortgage loans that – in the words of the Bear Stearns deal manager – was a “SACK OF SHIT.”1 Within the walls of its sparkling new office tower, Bear Stearns executives knew this derogatory and distasteful characterization aptly described the transaction. Indeed, Bear Stearns had deliberately and secretly altered its policies and neglected its controls to increase the volume of mortgage loans available for its “securitizations” made in patent disregard for the borrowers’ ability to repay those loans. After the market collapse exposed its scheme to sell defective loans to investors through these transactions, JP Morgan executives assumed control over Bear Stearns and implemented an across-the-board strategy to improperly bar EMC from honoring its contractual promises to disclose and repurchase defective loans through a series of deceptive practices. In what amounts to accounting fraud, JP Morgan’s bad-faith strategy was designed to avoid and has avoided recognition of the vast off-balance sheet exposure relating to its contractual repurchase obligations – thereby enabling JPMorgan Chase & Co. to manipulate its accounting reserves and allowing its senior executives to continue to reap tens of millions of dollars in compensation
following the taxpayer-financed acquisition of Bear Stearns.

continue to the complaint below…

Scribd

Related posts:

1. COMPLAINT | ALLSTATE SUES JPMORGAN CHASE OVER FRAUD & MISREPRESENTATION OF RMBS CERTIFICATES ALLSTATE BANK, ALLSTATE INSURANCE COMPANY, ALLSTATE LIFE INSURANCE COMPANY, ALLSTATE...
2. [NYSC] Judge Orders JPMorgan Chase “TO SHOW CAUSE”: JPMORGAN CHASE v. SCISSURA JP Morgan Chase Bank, N.A., -against- Carlo Scissura Excerpt: why...
3. COMPLAINT | Top JPMorgan Execs. Were Warned of Madoff Scheme Amended Complaint against all defendants / Complaint against JPMorgan Chase...
4. FULL COMPLAINT | Cambridge Place Investment Management Inc. v. Morgan Stanley, 10-2741, Suffolk Superior Court (Boston) Scribd Read More… Mortgage Investors Suing For MBS FRAUD… Is...
5. CLASS ACTION Amended complaint against Countrywide et al Involving $350 Billion of Mortgage-Backed Securities Other defendants in the case, aside from Countrywide, several of...