No. of Recommendations: 1
In light of the recent fraud suit against JPM over Bear Sterns, I thought it might be wise to take a look at the other players in this bucket of unprotected mort securities.

So far, the JPM stock price has not been harmed by this but that is because they continue to have a much healthier balance sheet. JPM also bought WaMu which likely had the same problem as Bear so there is probably another suit in the future for JPM.

In contrast, I think the biggest concern for all players is the purchase of Countrywide (the largest and probably worst player in this market) by B of A. The balance sheet of BAC is much worse than JPM so the likely suit to be brought against BAC could smack their stock price for double digits. Countrywide sold over $400 billion in such securities during this time - twice what Bear Sterns did - so the suit against BAC could top $50 billion which is half of their market cap.
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