Bear Stearns employees seem to have called the securitized mortgages they were insuring with Ambac a number of variations on the word “crap.”Ambac is currently suing the former financial firm that is now owned by JPMorgan for, they claim, defrauding investors of millions through shoddy mortgage securities they helped to engineer and sold.
They allege that Bear Stearns sold securities which it admitted it thought were “crap” (and didn’t want to own) to investors and insured them with Ambac just to make a quick buck.
So we read through the lawsuit and rounded up the instances where the firm’s employees are literally e-mailing one another about how the mortgages securitized by the company EMC are a “SACK OF SH*T,” (allegedly) shorting the banks that own Ambac-insured securities, and filing a claim against EMC to get them to re-purchase the securities.
Because Ambac claims that by doing so, what Bear Stearns is really saying is, “we don’t want this crap, but we want to make money off it.”
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