Brookstone Law PC’s Lawsuit Against JP Morgan Shows Recent Bank Executives’ Email Revelations

Public disclosure of profanity-laced emails indicating senior executives of Bear Stearns and JP Morgan were aware of the toxic quality of mortgage loans they were selling homeowners are among several revelations alleged in a lawsuit against JP Morgan, according to Vito Torchia, Jr., managing attorney of Brookstone Law, PC, a leader in mass tort litigation consumer protection.


Brookstone Law recently filed, on behalf of over 60 plaintiffs, a mass tort lawsuit against JP Morgan Chase, Washington Mutual, EMC Mortgage and Bear Stearns alleging that executives at those banks knowingly steered homeowners into toxic adjustable rate or short term adjustable loans. The case is Potter vs. JP Morgan Chase, N.A., case no. BC459627, and was filed in the Central District of the Los Angeles Superior Court. The case parallels allegations described in media coverage of another lawsuit against JP Morgan filed by Ambac Assurance Corp.
 
“According to court documents,  the depositions confirm that Bear Stearns and JP Morgan Chase were targeting California with dangerous loans, which is one of the reasons so many homeowners here are suffering,” said Vito Torchia, Jr. “Both banks’ executives knew the loans they were writing were dangerous yet, just as in their recent settlement over wrongful foreclosures of military families’ homes and as we allege in the suit against them, they were driven only by their balance sheets and in the process hurt thousands of homeowners.”
 
Media coverage of the lawsuit by mortgage insurer Ambac against Bear Stearns and JPMorgan that was recently unsealed made supporting e-mails public that show Bear Stearns traders telling their superiors they were selling investors like Ambac loan products that were a "sack of shit." According to media coverage, the lawsuit alleges that e-mails and internal audits also show JPMorgan, the nation’s second largest bank, had known about the fraud since 2008 but hid it from the public.


“These revelations clearly show how banks are responsible for many of the problems that caused the mortgage foreclosure crisis and care only about their profit margin,” said Vito Torchia, Jr. “Their treatment of their clients as evidenced by their internal emails was almost as disgusting as the fraud they are alleged to have committed.”

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