The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

NEW YORK (AFP) – U.S. banking giant JPMorgan Chase said Thursday that it is facing parallel civil and criminal investigations over its sale of mortgage-backed securities before the financial crisis.

JPMorgan disclosed in a securities filing that in May it was notified by the civil division of the U.S. Attorney’s Office for the Eastern District of California stating that it had preliminarily concluded that the bank “violated certain federal securities laws” in connection with the subprime mortgage-backed securities offered over 2005-2007.

The filing described a criminal inquiry from the U.S. Attorney Office in parallel to the civil investigation, but did not provide further details.

The filing went on to say that JPMorgan is responding to “a number of subpoenas and informal requests for information from other federal and state authorities” over its sale of mortgage-backed securities from the same period.

The probes signal that JPMorgan, the nation’s largest bank by revenue, continues to face tough regulatory scrutiny. The company last week agreed to pay $410 million to resolve U.S. charges that it manipulated power prices in California and the Midwest.

The probes are also the latest sign the big banks are still not clear of fallout from the housing bust and subsequent financial crisis. U.S. regulators Tuesday sued Bank of America for fraud over its sale of $850 million in mortgage-backed securities the cause huge losses for investors.

Photo Credit: AFP/Spencer Platt

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Danziger Draws

Jeff Danziger lives in New York City. He is represented by CWS Syndicate and the Washington Post Writers Group. He is the recipient of the Herblock Prize and the Thomas Nast (Landau) Prize. He served in the US Army in Vietnam and was awarded the Bronze Star and the Air Medal. He has published eleven books of cartoons, a novel, and a memoir. Visit him at DanzigerCartoons.

Reprinted with permission from AlterNet

On Wednesday, November 24 — the day before Thanksgiving 2021 — a verdict was handed down in the trial of the three Georgia men involved in the murder and lynching of Ahmaud Arbery. Travis McMichael, who shot and killed the unarmed Arbery at point-blank range, his father Greg McMichael, and their neighbor William "Roddie" Bryan were all found guilty of murder as well as aggravated assault and false imprisonment. Liberal Washington Post opinion writer Eugene Robinson applauds this verdict in a November 24 column, stressing that it sends out a vitally important message that lynching "will be punished."

Keep reading... Show less
x
{{ post.roar_specific_data.api_data.analytics }}