Congressman Barney Frank defended JPMorgan following a civil lawsuit filed by the New York AG over mortgage fraud relating to the Bear Stearns unit the bank acquired during the height of the financial crisis, Reuters reported.
Here’s the statement from Frank, the co-author of Dodd-Frank Wall Street Reform and Consumer Protection Act.
“The decision now to prosecute J.P. Morgan Chase because of activities undertaken by Bear Stearns before the takeover unfortunately fits the description of allowing no good deed to go unpunished.”
Earlier this month at hte Council on Foreign Relations, JPMorgan’s outspoken CEO Jamie Dimon said that they did the U.S. government a “favour” by buying Bear Stearns. Dimon also claimed that they have lost more than $5 billion in litigation and write downs related to Bear Stearns.