The New York attorney general sued JPMorgan Chase on Monday, charging that the Bear Stearns brokerage it bought committed fraud in the sale of hundreds of billions of dollars in MBS on the eve of the housing crisis.

Bear Stearns abandoned its credit guidelines for reviewing borrowers whose MBS it sold to investors over a roughly five-year period beginning in 2003, New York Attorney General Eric Schneiderman charged in a civil lawsuit filed in Manhattan. JPMorgan acquired Bear Stearns in March 2008.

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