How to get your way in Washington. Dimon flirting with Romer...
Insurance giant Allstate is suing JPMorgan Chase and subsidiaries Bear Stearns and Washington Mutual for fraudulently selling the insurer more than $750 million in residential mortgage-backed securities backed by toxic loans.
In its complaint, Allstate alleges the defendants "made numerous misrepresentations and omissions regarding the riskiness and credit quality" of the loans backing the securities sold as part of the transaction. JPMorgan Chase acquired Bear Stearns and Washington Mutual — along with the banks' assets — back in 2008 when the housing meltdown hit. While both firms are technically defunct, each still has structured finance trading platforms unwinding.
Allstate issued a statement about the suit Wednesday saying the offerings made by the financial institutions "contained untrue statements and omitted material facts." The insurer said, "Between 2005 and 2008, Allstate purchased more than $750 million in mortgage-backed securities from those defendants."
Dimon tells Charlie Rose that J.P. Morgan is NOT too big to fail...
Video: Dimon with Charlie Rose -- December 22, 2009
- "You punks must be thinking of Pandit and Citigroup. JPMorgan could be sliced, diced and split this week."