JPMorgan Chase & Co. was sued by CIFG Assurance North America Inc., which says that it lost more than $100 million on collateralized debt obligations (CDOs) created by Bear Stearns, the investment bank JPMorgan acquired in 2008, Bloomberg News reported yesterday. Bear Stearns stocked the CDOs with toxic mortgage securities and profited by betting against the portfolios, the insurer said in a complaint filed yesterday in New York State Supreme Court. Bear Stearns told CIFG that independent firms had selected the collateral, New York-based CIFG said. "As a result of its fraud, Bear Stearns was able to pass off huge losses onto CIFG," according to the complaint.
