Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

JPMorgan Is Sued by Hapoalim Over Mortgage-Backed Bonds

Don't Miss Out —
Follow us on:

Aug. 10 (Bloomberg) -- JPMorgan Chase & Co., the largest U.S. bank by assets, was sued by Bank Hapoalim BM over $361.2 million in residential mortgage-backed securities in New York state court.

Israel’s second-biggest bank is seeking damages for claims including common-law fraud, fraudulent inducement and negligent misrepresentation, according to court filing today in Manhattan. The bank accuses JPMorgan of making material misrepresentations in the offering materials for the investments.

“Plaintiff did not know the true facts regarding defendants’ misrepresentations and omissions in the offering materials, and justifiably relied on those misrepresentations and omissions,” Bank Hapoalim said in the filing. “Defendants’ wrongdoing has led directly to plaintiff’s damages, which include loss of market value on the securities.”

Jennifer Zuccarelli, a spokeswoman for JPMorgan, didn’t immediately respond to an e-mail seeking comment on the suit.

Bank Hapoalim, based in Tel Aviv, sued Charlotte-based Bank of America Corp., the second-biggest U.S. bank, in the same court in April over $721 million worth of residential mortgage-backed securities.

Pools of home loans securitized into bonds were a central part of the housing bubble that helped send the U.S. into the biggest recession since the 1930s. The housing market collapsed, and the crisis swept up lenders and investment banks as the market for the securities evaporated.

The case is Bank Hapoalim BM v. JPMorgan Chase & Co., 652799/2012, New York State Supreme Court (Manhattan).

To contact the reporter on this story: Chris Dolmetsch in New York at cdolmetsch@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.