Schneiderman smacks JP Morgan with lawsuit

While there haven’t been any criminal prosecutions to date relating to the financial collapse and subsequent global recession; we are beginning to see some lawsuits finally being launched by regulators.

The New York Attorney General sued JPMorgan Chase on Monday, alleging that Bear Stearns, the troubled investment bank it bought in 2008, “kept investors in the dark” about the quality of the mortgage-backed bonds it was selling as the market started to sour.

Just remember this is the same Bear Stearns that Jim Cramer would have had us buying and that Jamie Dimon eventually got for something around $2 dollars a share.

In an update to the Huffington Post story, this is what JP Morgan had to say:

In a statement, a JPMorgan Chase spokeswoman said the bank was disappointed that Schneiderman “decided to pursue its civil action without ever offering us an opportunity to rebut the claims and without developing a full record – instead relying on recycled claims already made by private plaintiffs.”

Of course JP Morgan is disappointed but they’re not going to find a lot of sympathy except from apologists like Kudlow (right wing hack), Bartiromo and others on CNBC. People want justice and this action is hopefully the first among many.

via JPMorgan Chase Lawsuit: New York Attorney General’s Suit Is First For Task Force.

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