October 9, 2012 — Phil Angelides, former chairman of the Financial Crisis Inquiry Commission, delves into the fraud lawsuit being brought against JPMorgan with “Viewpoint” host Eliot Spitzer. New York Attorney General Eric Schneiderman has brought the case, which alleges that Bear Stearns — purchased by JPMorgan in 2008 — deceived investors when it sold them mortgage-backed securities it knew were defective.
“This was not just Bear Stearns. This was Citigroup, it was Deutsche Bank, it was JPMorgan, it was the list of all the big institutions,” Angelides says. “The documents which you have seen show that this was institution by institution. And even when they knew they were very bad loans, they waved them in, they packaged them, they sold them.”