Judge Napolitano Discusses the Politics At Play in New York's Lawsuit Against JP Morgan
New York’s attorney general filed a lawsuit against J.P. Morgan Chase & Co. over the sale of mortgage-backed securities by Bear Stearns, which was acquired by J.P. Morgan in 2008.
The state is accusing the bank of
widespread fraud, writing in the complaint that, the bank "systematically failed to fully evaluate the loans, largely ignored the defects that their limited review did uncover, and kept investors in the dark about both the inadequacy of their review procedures and the defects in the underlying loans".
J.P. Morgan Chase said it was "disappointed" by the civil action, but vowed to contest the allegations.
Judge Andrew Napolitano discussed the lawsuit this morning on Fox Business Network, specifically the question of whether New York Attorney General Eric Schneiderman's political ambition is playing into the legal action.
"There's a rich and storied history of [New York attorneys general running for higher office.] Should politics influence prosecutions? Absolutely not. Does it? Of course it does," Napolitano said.