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JPMorgan Knew Some Mortgage Deals Were Bad, Duh


By zzyzzx   Follow   Thu, 7 Feb 2013, 3:20am PST   163 views   0 comments
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http://dealbook.nytimes.com/2013/02/06/e-mails-imply-jpmorgan-knew-some-mortgage-deals-were-bad/

Rather than disclosing the full extent of problems like fraudulent home appraisals and overextended borrowers, the bank adjusted the critical reviews, according to documents filed early Tuesday in federal court in Manhattan. As a result, the mortgages, which JPMorgan bundled into complex securities, appeared healthier, making the deals more appealing to investors. The trove of internal e-mails and employee interviews, filed as part of a lawsuit by one of the investors in the securities, offers a fresh glimpse into Wall Streets mortgage machine, which churned out billions of dollars of securities that later imploded.

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