A fraud suit against JPMorgan Chase & Co. (JPM:US) filed by German lender Bayerische Landesbank over losses on about $2.1 billion in residential mortgage-backed securities was moved to a federal court, according to a filing.
The Munich-based bank, the second-biggest German state- owned lender, sued in New York State Supreme Court in Manhattan on Nov. 21, accusing JPMorgan and units including Bear Stearns & Co. of concealing the truth about the quality of the loans underlying the securities.
The lawsuit was moved to U.S. District Court in Manhattan, according to documents filed in the state court yesterday. The move was proper because under federal banking law, federal courts have jurisdiction over civil actions involving transactions with foreign banks, New York-based JPMorgan said in the court filings.
The case is Bayerische Landesbank New York Branch v. Bear Stearns & Co., 653239/2011, New York State Supreme Court, New York County (Manhattan).
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