Barney Frank cries foul in government’s lawsuit against JPMorgan

(Reuters) – Democratic Congressman Barney Frank defended the nation’s largest bank on Monday, saying in a statement that the government was wrong to go after JPMorgan Chase & Co for the alleged misdeeds of Bear Stearns.

Frank, the co-author of the 2010 Dodd-Frank financial reform law, said federal and state officials should reconsider holding financial firms liable for the wrongdoing of institutions they absorbed at the government’s urging.

The unusual statement comes after New York Attorney General Eric Schneiderman sued JPMorgan, the nation’s largest bank by assets on October 1 over mortgage-backed securities packaged and sold by Bear Stearns.

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