James Dimon, chairman and chief executive of JPMorgan Chase, arrives at the Justice Department in Washington last month. A civil fraud case against JPMorgan Chase has been filed in Sacramento. (Manuel Balce Ceneta / Associated Press / September 26, 2013)
By Andrew Tangel
October 25, 2013, 8:27 a.m.
NEW YORK — Should federal prosecutors favor California as backdrop for cases against Wall Street firms?
Earlier this year, there was the Justice Department’s lawsuit against Standard & Poor’s, which prosecutors accused of fueling the financial crisis with dubious ratings of mortgage investments. That case was filed in federal court in Los Angeles.
Now there is another civil fraud case against a Wall Street firm — this one out of Sacramento. As The Times reports Friday, U.S. Atty. Benjamin Wagner’s threatened lawsuit over mortgage investments against JPMorgan Chase & Co. could help lead to a massive $13-billion settlement between the bank and Justice Department.
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