JPMorgan Chase & Co. is being sued for fraud by Germany's Bayerische Landesbank (BayernLB) over losses on approximately $2.1 billion in 57 mortgage-backed securities offerings issued between 2005 and 2007.Â
Bloomberg reports that the German bank accuses JPMorgan and its units of intentionally misrepresenting the value of the residential mortgages underlying its securities. BayernLB says that most of the securities were downgraded to junk level.
‘This misconduct has resulted in astounding rates of default on the loans,’ BayernLB said in its lawsuit, which was filed in New York State Supreme Court.
JPMorgan declined to issue a public comment on the lawsuit.