This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
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 - Get Report),
Citigroup(C - Get Report),
Goldman Sachs(GS - Get Report), and
Morgan Stanley(MS - Get Report) as well as other players in the crisis -- could follow.
WSJ article quoted an unnamed official in Schneiderman's office as saying: "We intend to follow up with similar actions against other sponsors and underwriters of RMBS."
The suit apparently 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.
JPMorgan shares were dipping in after-hours action, sliding 33 cents, or 0.76%, to $40.66 on volume of more than 655,000, according to
Written by Michael Baron in New York.
>To contact the writer of this article, click here: