Albany, NY – In response to recent criticism of New York State Attorney General Eric Schneiderman’s case to hold JP Morgan Chase (which acquired Bear Stearns in 2008) accountable for Bear’s financial fraud leading up to the financial crisis,Karen Scharff, Executive Director of Citizen Action of New York, said:
JP Morgan Chase took advantage of the financial meltdown by acquiring Bear Stearns in a successful effort to make enormous profits – not to save the American financial system. It’s a sophisticated institution that makes money by weighing the risks and benefits of complex transactions every day, and the decision to acquire Bear Stearns, and the liability that comes with that acquisition, is no different. Anyone who paints this acquisition as some kind of selfless act of charity is either disingenuous or extremely naïve. Bear Stearns made numerous fraudulent representations that fueled demand for toxic mortgage backed securities. Attorney General Schneiderman is right to continue pursuing justice for those who were harmed by Bear’s misdeeds.
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