NEW YORK, Nov 28 (Reuters)—Bond insurer Assured Guaranty Ltd filed new claims against JPMorgan Chase & Co over a mortgage-backed security sold by Bear Stearns, saying more than 35 witnesses have come forward to testify about how loans in the $337 million transaction were misrepresented.
The lawsuit contends Bear Stearns and its EMC mortgage arm, acquired by JPMorgan after their collapse in 2008, knew the pool of more than 6,000 home-equity lines of credit that served as collateral for the investment was filled with defective loans.
“Bear don't care,” was the mantra of underwriters at Watterson Prime, the due diligence firm hired by Bear to review loans for mortgage securitizations, according to the lawsuit, filed in U.S. District Court in Manhattan and made public on Monday.
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