- JPMorgan (JPM -0.5%) since at least 2004 has steered minority borrowers into mortgages they couldn't afford, claims Los Angeles, setting off a foreclosure wave which slammed property values and thus city tax receipts. The city late last year filed similar actions against Wells Fargo and Bank of America, and earlier this week a federal judge denied Wells' bid for dismissal.
- Previously: Predatory lending lawsuit against Wells Fargo moves forward
- “We are disappointed the L.A. City Attorney is pursuing an adversarial approach to address city finances impacted by the recent economic downturn," says a JPMorgan spokesman, vowing a vigorous defense.