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Sept. 22, 2014
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Virginia Attorney General Mark R. Herring (D) on Monday dropped JPMorgan Chase from a mortgage securities lawsuit against the country’s biggest banks, after learning that his predecessor Ken Cuccinelli (R) had already struck a “confidential” settlement with the bank.
The decision comes a week after Herring announced a $1.15 billion lawsuit against 13 of the country’s biggest banks for misleading a state retirement fund about the quality of bonds made up of residential mortgages.
JPMorgan and its Washington Mutual subsidiary were named in the suit, along with Citigroup and Bank of America, for packaging faulty home loans into securities sold to the Virginia Retirement System (VRS).
*What the story does not tell you is that in order to obtain 90 x 1 leverage the same securities were sold many Many times over to retirement funds, pensions AND securities investors. See here for more info: https://tawebster.wordpress.com/2010/11/22/what-is-jp-morgan-chase/ for more info.
*A better explanation of the reason for the lawsuit.
*Why it is important to understand documentation and possible deficiencies.