JPMorgan Under Investigation By DOJ

JPMorgan Chase said it’s under criminal and civil investigation related to mortgage-backed securities, making it the largest bank in the U.S. to face criminal sanctions over the securitization process that contributed to the financial crisis in 2008.

jpmorgan ceoJPMorgan faces criminal charges

The Justice Department told JPMorgan in May that prosecutors had “preliminarily concluded” that the bank violated civil securities laws related to mortgage securities it packaged and sold from 2005 to 2007, the bank announced in a quarterly securities filing.

JPMorgan is already facing a lawsuit over similar practices by Eric Schneiderman, New York attorney general, and has settled similar cases brought by the Securities and Exchange Commission.

Other financial groups also have announced in securities filings that they’re under investigation for their dealings in mortgage issues.

JPMorgan revealed a draft of expected enforcement procedures that have been widely mentioned by the bank and its chief executive and chairman, Jamie Dimon, but never before in such specific detail.

‘Unfair or deceptive’ practices

The Consumer Financial Protection Bureau will investigate the company’s collection and sale of delinquent consumer credit card debt, including its use of documents to pursue bad debts.

CFPB said they would formally discipline JPMorgan for “unfair or deceptive” practices related to determine theft products it previously sold to consumers.

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