Published on 2nd October 2012
JPMorgan Chase & Co. has become the first target of a Justice Department task force set up this year to hold big Wall Street banks accountable for their role in the financial crisis. In a lawsuit filed in New York State Supreme Court late Monday, New York Atty. Gen. Eric. T. Schneiderman contends that JPMorgan should be held liable for widespread fraud related to the packaging and sale of securities backed by residential mortgages. These mortgage bonds were sold to investors in the run-up to the 2008 financial crisis by Bear Stearns & Co., the crippled investment bank later bought by JPMorgan.