Center for Community Change

JP Morgan Sued for Allegedly Perpetuating Massive Fraud Deals

For Immediate Release: Tuesday, Oct. 2, 2012
Contact: Donna De La Cruz, ddelacruz@communitychange.org (202) 339-9331

Lawsuit Shows That Big Banks Being Held Accountable
 
(WASHINGTON)—JP Morgan Chase & Co. has been sued for allegedly perpetuating massive fraud deals in the packaging and selling of mortgage securities, which affected many Americans who applied for mortgages during the housing boom.
 
“This lawsuit shows that JP Morgan and other big banks cared only about their profit margin, choosing greed over helping Americans secure fair mortgages that they could afford,” said Deepak Bhargava, Executive Director of  the Center for Community Change. “We applaud authorities for cracking down on these egregious practices.”
 
The lawsuit, filed Monday in New York State Supreme Court by New York Attorney General Eric T. Schneiderman, is the first to be filed under the watch of the mortgage task force, the Residential Mortgage-Backed Securities Working Group, set up by President Obama to look into alleged misconduct in the mortgage market prior to the financial crisis.
 
“The task force has shown that big banks will not be able to swindle Americans who work hard every day to make ends meet,” Bhargava added. “The task force must remain vigilant and persistent in seeking justice and restitution.”
 
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