Why is JPMorgan Heading to Court?
JPMorgan Chase & Co. (NYSE:JPM) will be heading to court in connection to Syncora Guarantee Inc.’s accusations that Bear Stearns & Co., which JPMorgan acquired in 2008, made false and misleading statements about mortgage-backed securities.
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Bond insurer Syncora sued JP Morgan Securities LLC in relation to a transaction known as GreenPoint Mortgage Funding Trust 2007-HE1.
A motion to dismiss the case on the grounds that Syncora had previously tried to litigate in federal court in Manhattan was denied. Justice Charles E. Ramos wrote in his decision, “Syncora, in this case, deserves its day in court against JPMorgan”.
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