U.S. bourses not rushing to merge, analysts say

CHICAGO (Reuters) – U.S. exchanges may not rush to strike deals to compete with the combined Deutsche Boerse AG and NYSE Euronext , even as the sector is almost certain to consolidate further over…

S&P rises, doubles its 2009 low

NEW YORK (Reuters) – The S&P 500 rose on Wednesday to twice its value from just two years ago, a bounce whose vigor has not been seen since the Great Depression.

Stress-blocking drug restores hair in bald mice

CHICAGO (Reuters) – U.S. researchers studying the effects of stress on the gut may have stumbled on a chemical compound that stimulates hair growth.

Reforms needed to reduce deficit: Geithner

WASHINGTON (Reuters) – Treasury Secretary Timothy Geithner said on Wednesday that it was essential for the country to lock in a set of fiscal reforms to put the nation’s budget on a sustainable path.

UPDATE 1-J Crew "go shop" period ends with no new offers

SAN FRANCISCO, Feb 16 (Reuters) – J Crew Group Inc ,
which received a $2.86 billion private equity buyout offer,
said on Wednesday it had received no alternative acquisition
proposals during an…

Family Dollar bid sparks rally in discount stores

NEW YORK (Reuters) – Billionaire investor Nelson Peltz’s bid for Family Dollar Stores Inc underscores growing investor appetite for retailers targeting low-income Americans in a slow economic…

LSE, Chi-X eye spoils from Boerse-NYSE takeover

LONDON (Reuters) – The London Stock Exchange and rival Chi-X Europe are banking on clients and regulators to ensure Deutsche Boerse’s $10.2 billion takeover of NYSE Euronext

JPMorgan Accused Of Fraud by Allstate

JPMorgan Chase is being sued by Allstate insurance company for fraud, in the latest example of a big bank being accused of knowingly selling a poor-quality product.

In a lawsuit dated Wednesday, the insurance company accuses the bank of knowing that the bundles of loans it was selling were very likely to go bad. The suit joins a host of similar accusations from insurance companies and investors, who suffered losses when securities that were sold as high-quality instead turned sour.

An industry of originating, selling and investing in risky mortgages helped bring about the worst economic downturn since the Depression. When the real estate market crashed, investors, insurers and homeowners saw the value of their assets tumble.

Allstate is claiming that JPMorgan and the banks it now owns fraudulently sold it more than $750 million of such mortgage-backed securities, CNBC reports.

In another lawsuit, recently unsealed, Ambac insurance company has accused Bear Stearns (now owned by JPMorgan) not only of knowing the loans it was selling were toxic, but also of accepting payments from mortgage companies to compensate for those loans.

From the Allstate lawsuit:

Whereas Allstate was made to believe it was buying highly-rated, safe securities backed by pools of loans with specifically-represented risk profiles, in fact, Defendants knew the pool was a toxic mix of loans given to borrowers that could not afford the properties, and thus were highly likely to default.

READ the suit below:


Read more: Fraud, JPMorgan Chase, Housing Market, Mortgage Securities, Economic Crisis, Mortgage Crisis, Allstate, Business News, Bear Stearns, Real Estate, Ambac, Business News