Forget the low end of JPMorgan’s (JPM) assertion of $0-$6B in possible losses from the FHFA lawsuit over $33B in MBS, writes Alison Frankel. A judge’s Monday decision allowing the suit (and a similar one against Merrill Lynch) to go forward blew up nearly every argument made by the banks, including the key one that Frannie – being so sophisticated with MBS – should have known better. The banks don’t want this is front of a jury. Look for a settlement before the summer 2014 trial date. 
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