Bond Insurer Syncora Sues JPMorgan, Bear Stearns, and EMC Mortgage

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On October 5, Syncora Guarantee Inc. filed suit in New York state court against JPMorgan Chase Bank NA, Bear Stearns & Co., Inc., and EMC Mortgage LLC. Syncora asserts claims of breach of contract, fraudulent inducement, and tortious interference in connection with a 2007 re-securitization of real estate mortgage investment conduits (REMICs) that consisted of certificates from four Bear Stearns RMBS. The complaint alleges that the defendants misrepresented the quality of the mortgage loans underlying the RMBS and the quality of the due diligence performed in connection with the origination of those loans. Syncora claims it has paid out over $94 million to insured investors on a transaction that experienced cumulative losses of over $111 million. Syncora seeks compensatory and punitive damages, reimbursement, and attorneys fees and costs.  Complaint.