JPMorgan Chase should be liable for alleged fraud by Bear Stearns, which it now owns, AFL-CIO President Richard Trumka said in a statement released today.
JPMorgan Chase bought the assets and liabilities of Bear Stearns fair and square. Now the combined company must be held accountable for any fraudulent acts committed by Bear Stearns that led up to the Wall Street financial crisis. To excuse past wrongdoing at Bear Stearns will unjustly enrich the company’s new owner JPMorgan Chase and mean that nobody will be held accountable for Bear Stearns’ allegedly fraudulent acts.
If the Wall Street meltdown that led the Great Recession was caused by the alleged wrongdoing of companies like Bear Stearns, law enforcement should hold those responsible accountable for their actions.
Law enforcement must get to the bottom of the fraudulent activity that spawned the Wall Street financial crisis. For this reason, the AFL-CIO strongly supports the ongoing law enforcement efforts of New York State Attorney General Eric Schneiderman and the Residential Mortgage-Backed Securities Working Group established by President Obama.
Read Trumka's statement: JPMorgan Chase Should Be Liable for Alleged Acts of Fraud by Bear Stearns.