COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE

EDITOR’S NOTE: Sooner or later, these institutions an opportunity to both get their money and make some money in the resolution of these all-but-failed institutions. The answer is to make the mortgage bonds real and the way to do that is to make the mortgages real. Leaving the work to the Wall Street is like asking the fox the clean up after he’s had his fill in the hen house. There is a whole other way of resolving this and the contempt and arrogance of Wall Street bankers is the only obstacle for institutional investors in MBS to recover or mitigate their damages at much higher levels.

JPMorgan Sued by BayernLB Over Mortgage-Backed Securities

By David McLaughlin – Nov 22, 2011

JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, was sued for fraud by German lender Bayerische Landesbank over losses on about $2.1 billion in mortgage-backed securities.

JPMorgan units concealed the truth about the poor quality of the loans underlying the securities and knew that credit ratings misrepresented their risk, BayernLB said in a lawsuit filed yesterday in New York State Supreme Court.

“This misconduct has resulted in astounding rates of default on the loans,” BayernLB said. Most of the securities have been downgraded to junk, it said.

The lender said it believed the mortgage securities were safe investments based on representations about the quality of loans and credit ratings when it invested almost $2.1 billion in 57 offerings from 2005 to 2007, according to the complaint. The lawsuit names JPMorgan and other units of the New York-based bank as defendants.

Jennifer Zuccarelli, a spokeswoman for JPMorgan, declined to comment on the lawsuit.

The case is Bayerische Landesbank New York Branch v. Bear Stearns & Co., 653239/2011, New York State Supreme Court, New York County (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at

To contact the editor responsible for this story: John Pickering at



5 Responses

  1. Those hands are visible, usedkarguy. You afraid to mention names?
    How about Kissinger, Rockefeller, Brezinski, Corzine…the same players belong to the Council on Foreign Relations as the Trilateral Commission, as the Bilderberg Group. Just like Genesis lists all the begots, the same list of names is behind the levers (and the evil).

    These are the people who need to be held accountable. Madmen and a few women, like Hillary Clinton who is a militant zionist. They’ve been endeavoring to control the world through central bank power formally since 1954 and informally since 1910 at the Jekyll Island meeting. It’s scary how they were able to keep their plans secret for so long, aided by the likes of the Washington Post and the other media outlets who bought into the madness, promised discretion and pledged to spread disinformation. We know whose hands are on the levers, and who calls evil “good” and twists all the lies they proffer into what they think we will believe as “truth”. They are too arrogant to realize they should fear us, the righteous en masse.

  2. The missing dough from MF Global (they really MF’d their shareholders, now didn’t they!) and Mr.Corzine (O’Bama’a “go-to-guy” on matters financial) is reaching $1.2 BILLION, not $670 MIllion, as previously reported. RECZKO got 10 years (they guy who gave O’Bama half of his lot so the Bamster could build a bigger crib) and BLAGO is looking at 25 or more. These guys are all in on the scam, people! The media perpetuates the myth. The media is the mouthpiece. Very little JOURNALISM occuring, only spin and propaganda for either party of the ruling class.
    Believe me when I tell you the banking situation is set to repeat itself before the election. Cubed2k and someone else were alluding to what I call “the invisible hand” that pushes the psyches and then the markets with manipulation from the Dr.Evils of world finance: Goldman Sachs, the Federal Reserve, and the European LIBOR banks. And don’t forget George Soros.

  3. About that memo I refered to, what i find very interesting is that banks are fully aware (hence scared) that democrats will run on a platform openly opposed to banks while republicans will not, under any circumstance, defend those same banks.

    Millions have been earmarked to sway the elections on those grounds.
    Personally, I don’t give a hoot whether people run as republicans or democrats: I’ve never voted for a party but for a candidate. Smart people will profess their hate of banks and their intention to either nationalize them (extreme left democrate) or to dismantle them and reduce their size (republicans). Either, they’re toast. Question of time.

  4. JP Morgan pretended to be my mortgage holder for a long time. One day, a long time ago, I stopped paying them after they had refused me a mod, enticed me into opening a bank account to show regular income (that was supposed to facilitate my mod) and assessed me bank fees they had never disclosed beforehand, Lost my mortgage payments and assessed fees, ignored my “Where is the Note” and subsequent QWR. I then filed a lawsuit on all kinds of grounds, not the least of which being unjust enrichment and conversion.

    I cut all ties with Chase and with every other large bank and went the credit union route. Since then, I have been literally harrassed with offers of credit cards I never asked for, offers of $250 cash if I open an account with them and other nonsense. I keep all those offers and I now have a shoebox full. When my case goes to trial (and I don’t intend to settle short of a full blown trial), I will produce those mailings to show that Chase has so much money that it can waste it in useless mailings rather than invest it in fixing what he has created. I intend to show that whatever money our government is giving to banks serves one purpose and one purpose only: harrass people and destroy this country.

    I expect it to go over really well with a jury…

    For those interested, the largest lobbyist firm put out a 4 page-memo written to the banks spelling out the strategy for the presidential elections. It targets specific states. That firm “owns” 16 congressmen to date.

  5. Hopefully, every other entity who made an investment will follow this lead and claw back all the illicit profits JPM made selling wood dipped in gold leaf as buillion. Sooner, not later, the Wall street criminals are going to start coughing up blood.

    While the borrower’s losses are just as substantial, and on a larger scale, they’ve been robbed of the financial means to pursue the criminlas in a court of law. The strategic de-industrialization and loss of jobs perpetrated on us in stealth and facilitated by a corrupt congress has left us financially weakened but not spiritually, and angry in stead of suppressed and tractable; they underestimated us.

    It’s just a matter of time until a lynch mob of millions overcomes them physically and takes matters into their own hands since the scales of justice are rigged in favor of the banks. There are too many victims, too few perpetrators and paid protectors, and too little justice in the face of all the corruption. An organized and outraged nation will act.

    Until we end this chapter in history by throwing the banksters in jail with our own hands, we can stop funding them to speed their demise. Don’t keep dumping it down a rabbit hole, keep your money. Cut your credit cards in half, close your bank accounts, and return to the way we lived before we were brainwashed into thinking debt was a fact of life.
    Stop believing that you need to protect your credit rating at all costs, and start realizing that they are selling your own information back to you at a profit, along with selling it over and over to the other players in the game that they are in cahoots with. Make this holiday season a
    “no sale” season, and send corporate amerika the message.

Leave a Reply

%d bloggers like this: