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

Jacob Chansley, or the "QAnon Shaman," in face paint, furs and horned hat during the January 6 Capitol riot.

Screenshot from Justice Department complaint

Notorious Capitol rioter Jacob Chansley, better known as the "QAnon shaman," is negotiating a possible plea deal with prosecutors after psychologists found he suffers from multiple mental illnesses, his lawyer told Reuters -- while painting a rosy image of the violent insurrectionist's part during the Capitol riot.

According to Albert Watkins, Chansley's defense lawyer, he was diagnosed with transient schizophrenia, bipolar disorder, depression, and anxiety by officials at the federal Bureau of Prisons (BOP). The findings have not yet been made public.

Keep reading... Show less

'Audit' under way in Maricopa County, Arizona.

Screenshot from azaudit.org

This article was produced by Voting Booth, a project of the Independent Media Institute.

The "big lie" that President Joe Biden was not legitimately elected is not going away. One reason is Americans who care about their democracy are not learning how votes for president in 2020 were counted and verified — neither from the big lie's promoters nor from most of its fact-driven critics.

Keep reading... Show less
x

Close