NY court revives Ambac case

A New York state appeals court yesterday revived Ambac Financial Group’s $1bn lawsuit against JPMorgan Chase & Co over an investment vehicle that suffered heavy losses from toxic subprime debt. The court said Ambac “has sufficiently alleged gross negligence” by JPMorgan, whose chief executive Jamie Dimon was said to have concluded as early as October 2006 that subprime mortgages “could go up in smoke”.