Posted By Cliff Tuttle | January 7, 2011
Federal Home Loan Bank of Pittsburgh v. J P Morgan Securities, LLC, J P Morgan Acquisitions Corp., J P Morgan Mortgage Acceptance Corporation I, Chase Home Finance LLC, Chase Mortgage Finance Corporation, JPMorgan Chase & Co, Moody’s Corporation, Moody’s Investor s Services, Inc., The McGraw-Hill Companies, Inc and Fitch, Inc.
On December 13, 2010, PLBT reported on the decision by Judge Wettick regarding the suit by the Federal Home Loan Bank of Pittsburgh against various J P Morgan companies and other defendants regarding certain mortgaged backed securities, which the Plaintiff says Morgan knew were not investment grade. Wettick granted partial summary judgment, but left enough defendants and causes of action standing to keep the action going.
Since then, the parties have filed a stipulation giving the Defendants until January 28 to file answers. Whether joint or separate answers will be filed remains to be seen.
Meanwhile, Bloomberg reports that JPM has been paying record counsel fees — over 5 Billion in the first three quarter of 2010 and counting. This has resulted in a severe impact on earnings. It seems that everybody wants to sue JPM/Chase, including mortgage foreclosure victims and nine Federal Home Loan Banks.
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