NATURE OF THE ACTION
MBIA seeks to recover damages it suffered as a result of the fraudulent acts and omissions by Defendant’s predecessor-in-interest, Bear, Stearns & Co. Inc. (“Bear Stearns”) to induce MBIA to issue a financial-guaranty-insurance policy in connection with the GMAC Mortgage Corporation Home Equity Loan Trust 2006-HE4 (the “2006-HE4 Securitization”). Bear Stearns was the lead securities underwriter on the 2006-HE4 Securitization.
Full complaint below…
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4closureFraud.org
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MBIA INSURANCE CORPORATION -against- J.P. MORGAN SECURITIES LLC
Nothing to see here , move along …
So Bear bought loans with no regard to underwriting standards ,, and MBIA allowed Bear to hire an “independant” company to grade the portfolio rather than do it themselves,, the 3rd party actually did find and report huge problems but Bear edited the bad stuff out of the report it gave MBIA to get the insurer to write the policy..
I’d be shocked if we ever find something done by the banks that wasn’t blatantly illegal.