J.P. Morgan Chase, America’s biggest bank, is being sued for allegedly defrauding investors who lost more than $20 billion on mortgage-backed securities sold by the investment bank Bear Stearns. JP Morgan bought Bear Stearns in 2008.
It’s the first action to come out of a working group created by President Obama looking into the causes of the 2008 financial crash. J.P. Morgan says it will contest the allegations.
Gretchen Morgenson, a reporter for The New York Times, explains.
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