"JPMorgan Reveals It Faces Civil and Criminal Inquiries"

[applegrove]

JPMorgan Reveals It Faces Civil and Criminal Inquiries

By JESSICA SILVER-GREENBERG and BEN PROTESS at the NY Times

http://dealbook.nytimes.com/2013/08/07/jpmorgan-reveals-it-faces-civil-and-criminal-inquiries/?_r=0

"SNIP...........................


JPMorgan Chase disclosed on Wednesday that it faced a criminal and civil investigation into whether it sold shoddy mortgage securities to investors in the run-up to the financial crisis, the latest legal threat to the nation’s biggest bank.

JPMorgan acknowledged for the first time the existence of the investigation — one of several mortgage-related problems looming for the bank — in a quarterly regulatory filing. It said that the civil division of the United States attorney’s office for the Eastern District of California, which covers a stretch of land that includes Sacramento and Yosemite, has “preliminarily concluded” that JPMorgan flouted federal laws with its sale of subprime mortgage securities from 2005 to 2007. The parallel criminal inquiry, according to one person briefed on the matter, is in a more preliminary stage.

Adding to scrutiny of the bank, federal prosecutors in Philadelphia are examining whether JPMorgan duped investors into buying troubled mortgage securities that later imploded, according to people briefed on the matter, who spoke on the condition of anonymity. The prosecutors are investigating whether JPMorgan churned out the mortgage-backed securities without ensuring that the investments met underwriting standards, the people said.

Representatives for the bank and the federal prosecutors declined to comment.


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[applegrove]

1. Going to jail is the only punishment that will mean anything to some banksters.

Finally, some will be held accountable for destroying the middle class so they could make a fast buck.

[avaistheone1]

3. Are you kidding?

The only things these banks like Chase are "going" - is going to make billions more dough.

Obama is proposing to get rid of Fannie Mae and Freddie Mac and put the big banks like JP Morgan in charge of billions of dollars of housing assets. (Fox in charge of hen house. We can trust them. Right?) Big crime pays big these days.

http://www.democraticunderground.com/1014557991

[dtom67]

2. no admisssion of guilt,

And a fine of about 10 minutes worth of earnings. Then back to Fraud, fraud, fraud.

Happens all the time. Seems like a lot of money to you and me, but to jpm its a parking ticket.