Some securities packaged by Goldman and Tricadia ended up being so vulnerable that they soured within months of being created.
The complaint contends that Bear Stearns and its lending unit, EMC Mortgage, defrauded investors who purchased mortgage securities packaged by the companies from 2005 through 2007.
The complaint contends that Bear Stearns and its lending unit EMC Mortgage defrauded investors who purchased mortgage securities packaged by the companies from 2005 through 2007.
HE has been buying so-called Alt-A mortgage securities, packages of loans with credit quality rated between prime and subprime.
Mr. Crittenden said that volume in its securities packaging operation was down, and many analysts say it could take years to recover.
Among those testifying for the government were two witnesses, one of whom once worked at Goldman, who said that Mr. Tourre deceived them by not disclosing who selected the mortgage securities packaged in the C.D.O.
That might sound like a lot, but it's a drop in the $325 billion flood of mortgage securities packaged and sold by Bear Stearns, WaMu and JPMorgan Chase from 2005 to 2007.
Mortgage holders were not told the true terms of their loans, homes were overvalued, and investment firms put together mortgage-backed securities packages in ways that inflated their true value.
It revolves around Bear Stearns & Company, the failing investment bank acquired by JPMorgan Chase in a government-brokered fire sale in 2008, and contends that, from 2005 through 2007, Bear Stearns systematically defrauded investors who bought mortgage securities packaged by the investment bank and its mortgage-lending unit.
New York Attorney General Eric Schneiderman sued JPMorgan, the nation's largest bank by assets, on Oct. 1 over mortgage-backed securities packaged and sold by Bear Stearns.
