The Attorney General of New York State, Eric Schneiderman, did lawsuit to JpMorgan. The American banking giant is under fire for the subprime mortgage-related derivatives that Bear Stearns sold before the crisis hit, between 2006 and 2007. The institute – purchased by JpMorgan in March 2008 on the initiative of the Government – would have placed those bonds misleading investors about the quality of the underlying mortgage loans, which caused losses of $22,5 billion.
Schneidermann asked the return of all commissions and income obtained from the sale of these financial products, plus interest and a compensation. JpMorgan, however, is not there and "intends to dispute the allegations," announced a spokesman.
This is the first cause opened after the birth of the new one task force between federal and local bodies created by the Barack Obama administration to prosecute old and new financial scams. According to the Wall Street Journal, this task force would like to coordinate a dense series of appeals related to the past crisis, using the one just presented as a model. Between fines and compensation, American institutions could have to pay tens of billions of dollars.
