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Speaker 1: And now it's time for our daily Bloomberg Law Brief,

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Speaker 1: exploring legal issues in the news. And the law brief

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Speaker 1: is brought to you by American Arbitration Association. Business disputes

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Speaker 1: are inevitable, resolve faster with the American Arbitration Association, the

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Speaker 1: global leader in alternative dispute resolution for over ninety years.

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Speaker 1: More at a d r dot org. Today Bloomberg, La Hoos,

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Speaker 1: June Grasso, and Greg Store discussed two lawsuits accusing JP

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Speaker 1: Morgan's investment management unit of pushing risky mortgage bonds into

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Speaker 1: investment accounts just as the housing markets started to crumble.

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Speaker 1: They speak with Robert Hawckett, a professor at Cornell University

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Speaker 1: Law School. Can you just give us a little bit

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Speaker 1: of the flavor of the allegations in this case? Yeah,

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Speaker 1: I mean, so there have been of course, you can

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Speaker 1: kind of divide. I think most of the litigation that's

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Speaker 1: occurred since the house and crash into two families one

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Speaker 1: family of cases that have been brought had been brought

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Speaker 1: against those involved in securitization process itself. Right, So the

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Speaker 1: claim is that the mortgages were the mortgage loans were

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Speaker 1: in providently granted The other family of of cases that

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Speaker 1: have been brought have been based on claims that there

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Speaker 1: was sort of insufficient due diligence on the part of

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Speaker 1: portfolio managers and other managers of investment pools when it

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Speaker 1: came to selecting particular mortgage issue time sorry, mortgage backed

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Speaker 1: securities in assembling the portfolios. This is one of those

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Speaker 1: kinds of cases. Uh, And these have received a little

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Speaker 1: bit less attention, maybe because it's been it's kind of

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Speaker 1: natural as supposed to sort of focus attention on the

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Speaker 1: securitization process itself, on the sort of scandals that have

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Speaker 1: plagued or that did plague the origination process. But these,

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Speaker 1: these cases that have received a bit less attention are

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Speaker 1: are every bit is important, Bob. Why is this being

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Speaker 1: heard by a judge rather than a jury? There's any

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Speaker 1: number of reasons that would make this possible. I mean,

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Speaker 1: the typical reason that's that's given for choosing to have

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Speaker 1: a case heard by a judge rather than a jury

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Speaker 1: in a case like this is the thought that the

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Speaker 1: typical jury pool might not have, you know, sort of

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Speaker 1: adequate technical knowledge objectively to evaluate the prudence or otherwise

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Speaker 1: of the particular investment selections made by the portfolio managers.

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Speaker 1: I think the thought is that, well, maybe the judge

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Speaker 1: will be a little bit more dispassionate, a little bit

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Speaker 1: less prone to succumbing to stereotyps, stereotypical images of investment

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Speaker 1: managers and the like. Again, I don't I don't know

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Speaker 1: that that's sort of a correct perception on the part

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Speaker 1: of those who choose to have the cases heard by

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Speaker 1: by judges alone, But it does seem to be out

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Speaker 1: there right There seems to be a worry that the

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Speaker 1: typical jury pool is going to be sort of biased,

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Speaker 1: partly because they don't really understand what's going on in

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Speaker 1: these cases. That's Robert Hockett, a professor at Cornell University

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Speaker 1: Law School, speaking at the Bloomberg Law host JOm Grasso

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Speaker 1: and Greg Sture. You can listen to Bloomberg Law week

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Speaker 1: days at one pm Wall Street Time here on Bloomberg Radio,

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Speaker 1: and that is this morning's Bloomberg Law Brief. You can

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Speaker 1: find more legal news at Bloomberg Law dot com and

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Speaker 1: Bloomberg b Na dot com. Attorneys will find exceptional legal

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Speaker 1: research and business development tools there as well. Visit Bloomberg

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Speaker 1: Law dot com and Bloomberg BNA dot com for more information,