NEW YORK -- JPMorgan Chase (JPM) is reportedly being accused of fraud by New York Attorney General Eric Schneiderman.
According to The Wall Street Journal, Schneiderman has filed a civil complaint against the bank related to its alleged role in the sale of toxic residential mortgage-backed securities.
The suit is the first to be filed "under the aegis of a law enforcement group that was formed by President Barack Obama in January to pursue alleged wrongdoing related to the financial crisis," the Journal said, and similar actions against JPMorgan's investment bank brethren -- Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS) as well as other players in the crisis -- could follow.
The suit relates to billions of dollars worth of subprime mortgage securities issued by Bear Stearns, which JPMorgan later bought when it fell into distressed straits in 2008.J.P. Morgan Chase spokesman Joseph Evangelisti told the newspaper the bank intends to contest the allegations, and that it is "disappointed" that the attorney general's office "decided to pursue its civil action without ever offering us an opportunity to rebut the claims." JPMorgan Facing RMBS Fraud Suit in NY: Report
Boeing's (BA) engineers and technical workers' union rejected late Monday the aerospace giant's four-year contract offers. The union represents 23,000 workers. Talks on an agreement are expected to resume Tuesday. Has Bill Ackman Forgotten About J.C. Penney, Procter & Gamble?
Automakers such as Ford (F) and General Motors (GM) are expected to post auto and truck sales for September throughout Tuesday.
PetSmart (PETM), the pet products retailer, was named to join the S&P 500, replacing Sunoco (SUN), which is being acquired by Energy Transfer Partners (ETP).
Blyth (BTH), the direct-to-consumer marketing company, reached a deal to defer the closing of its purchase of its ViSalus weight-loss products business until April 2014.
Earnings scheduled for Tuesday include Acuity Brands (ACU), Mosaic (MOS), Resources Connection (RECN) and, Xyratex (XRTX).
-- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel
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