Copy of LA city attorney’s lawsuit against JP Morgan Chase

May 30, 2014

Suit Contends Bank’s Practices Deepened Foreclosure Crisis and Damaged City

Los Angeles–Continuing to tackle the impact of the foreclosure crisis on Los
Angeles, City Attorney Mike Feuer today sued another of the nation’s largest
banks, JP Morgan Chase. The suit alleges the bank engaged in discriminatory
lending, which the City contends led to a wave of foreclosures that continues to
diminish the City’s property tax revenues and increase the need for costly City

The new litigation against JP Morgan Chase comes on the heels of a federal
court ruling on Wednesday that denied a motion by Wells Fargo to dismiss a
similar complaint by the City. Feuer sued Wells Fargo, Bank of America and
Citigroup in December.

“L.A. continues to suffer from the foreclosure crisis–from blight in our
neighborhoods to diminished revenue for basic City services,” said
Feuer. “We’re fighting to hold those we allege are responsible to account and to
help bring back every community in our City.”

The City seeks damages for reduced property tax revenues resulting from the
decreased value of foreclosed properties–foreclosures the City claims were
caused by allegedly discriminatory mortgage lending. The suit also seeks
damages for the increased cost of City services resulting from the foreclosures.

As a member of the California State Assembly Feuer was an author of the
Homeowners’ Bill of Rights, along with other legislation to protect homeowners
grappling with foreclosure.

A copy of the complaint is attached.


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