Allstate Sues JP Morgan Over the Mortgage Backed Securities Mess
The largest publicly traded home and auto insurer, Allstate Corporation has sued JP Morgan Chase & Company over claims that the bank fraudulently sold it $700 million worth of mortgage backed securities (MBS), according an article in the Daily Herald. Additional defendants in the case are other firms acquired by JP Morgan, including WaMu Asset Acceptance Corporation and Bear Stearns Asset Backed Securities, LLC.
The complaint alleges that the insurance company was led to believe that the investment was highly rated and risk free, when in fact JP Morgan had knowledge that the MBS was a pool of toxic loans given to borrowers who could not afford the property they purchased and thus were highly likely to default. Allstate is seeking damages that include the loss in value of the MBS as well as principal and interest.
If you have suffered losses in mortgage backed securities (MBS), please contact,/a> our securities law firm for a free consultation at 1-800-259-9010.