JPMorgan Chase & Co., the biggest U.S. bank, defeated most of a lawsuit brought by Dexia SA over about $1.6 billion in mortgage-backed securities it bought before the financial crisis, Bloomberg News reported yesterday. U.S. District Judge Jed Rakoff narrowed the case to five securitization deals from 65 at issue in a complaint brought by Dexia, according to an order filed today. Rakoff said he would issue an opinion later explaining his reasoning. Dexia, based in Brussels, sued JPMorgan in 2012 along with the Bear Stearns and Washington Mutual businesses JPMorgan acquired, accusing the lender of "egregious fraud" in the sale of mortgage bonds. Dexia claimed loans backing securities purchased between 2005 and 2007 were riskier than promised.
