Bankrupt bond insurer Ambac Assurance Corp. has filed a second suit against JPMorgan related to MBS originated by Bear Stearns, which JPMorgan absorbed during the financial crisis in 2008.
The suit is Ambac’s second one against JPMorgan in the Supreme Court of New York, New York County.
“The securitization transactions and loans at issue in this action are different, but the story is the same: Driven by management’s “Bear don’t care” mentality, Bear Stearns perpetrated a massive fraud that deceived investors and financial guarantors, such as Ambac, into believing that the mortgage loans backing its securitizations were originated pursuant to established underwriting guidelines and were therefore of good quality,” Ambac’s complaint states.
The suit is Ambac Assurance Corp. and the Segregated Account of Ambac Assurance Corp. versus EMC Mortgage LLC et al. It was filed Friday.
JPMorgan did not respond to a request for comment.