Jan 3 (Reuters) - JPMorgan Chase & Co has been sued
for $95 million by the trustee for securities marketed in 2005
by the former Bear Stearns Cos over alleged misrepresentations
regarding the underlying mortgage loans.
US Bank NA wants to force JPMorgan to buy back the mortgage
loans because of alleged breaches of representations and
warranties regarding the Bear Stearns Asset Backed Securities
Trust 2005-4, for which it serves as trustee.
It also accused the largest U.S. bank by assets of refusing
to provide the underlying loan files, as the trust documents
require, so it can investigate the extent of the alleged
The unit of US Bancorp said it made its request at
the direction of a majority certificate holder in the trust. US
Bank also sued Bear Stearns and its former EMC Mortgage Corp
unit. JPMorgan bought Bear Stearns in 2008.
JPMorgan spokeswoman Jennifer Zuccarelli declined to
The lawsuit was filed on Friday in the New York State
Supreme Court in Manhattan, and publicly docketed on Tuesday.
It is one of many lawsuits seeking to hold banks responsible
for investor losses over mortgages that may have been toxic,
defective or improperly underwritten.
JPMorgan Chief Executive Jamie Dimon last month told
investors that the bank has been sued over $54.9 billion of
private-label securitizations, excluding the former Washington
Mutual Inc, and expects that number to rise.
"We think the disclosures are clear, risks were plain and
set forth," he said. "Investors, mostly sophisticated, they
understood and accepted it."
The case is Bear Stearns Asset Backed Securities Trust
2005-4 v. EMC Mortgage Corp et al, New York State Supreme
Court, New York County, No. 650003/2012.
For plaintiffs: Marc Kasowitz, Michael Fay and Uri Itkin of
Kasowitz, Benson, Torres & Friedman.
For defendants: Not immediately available.
(Reporting by Jonathan Stempel; Additional
reporting by David Henry)
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