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Re: cottonisking post# 75240

Friday, 10/20/2017 9:37:21 AM

Friday, October 20, 2017 9:37:21 AM

Post# of 110548
"JP Morgan argued at the hearing that because Ambac didn’t do a loan by loan due diligence of their own, where they might have discovered that Bear Stearns was lying before they insured it, that Ambac shouldn’t be able to bring a fraud claim. Ambac’s response was that wasn’t practical or normal course of business in these transaction because they relied on what Bear Stearns told them about what was in the security and on the due diligence reports Bear paid a third party to do for insurers. Ambac said, Bear Stearns wasn’t a fly by night bucket shop that needed its work to be checked and rechecked but a bulge bank with years of reputation and transactional trust built into the market."

http://www.teribuhl.com/2016/01/27/jp-morgan-pays-off-ambac-for-full-amount-of-rmbs-fraud-claim/comment-page-1/