1,000,000 + Attorneys and Legal Staff - Legal employers hire more people on LawCrossing than any other site.
Halliburton Settles Oil Spill Claims at $1.1 Billion
Halliburton Settles Oil Spill Claims at $1.1 Billion
Project Wing, Drone Delivery Service, Revealed by Google
Project Wing, Drone Delivery Service, Revealed by Google
Livedrive Riles UK Customers by Abruptly Terminating Services
Livedrive Riles UK Customers by Abruptly Terminating Services
Jury Verdict Against Bank of America to be Reviewed by Judge
Jury Verdict Against Bank of America to be Reviewed by Judge
Job Listings

JPMorgan Being Investigated Over MBS

JPMorgan Chase &Co, the largest bank by assets, is being criminally investigated by the U.S. Department of Justice over its mortgage-backed securities. The mortgage backed securities were securitized loans on mortgages using the equity value as collateral. The primary issue is that different risk and credit tranches were bundled together; triple A alongside triple B and C. So long as the assets retained their value, things would be on the up and up, and high risk would be followed by a high return. In a bubble environment, no one foresaw that the homes would lose their value. All of a sudden many portfolio managers were holding these assets that became worthless and several places became bankrupt as a result, like Solomon brothers, or Wachovia. Many people foreclosed as their mortgages were costlier than their homes.

The civil division of the U.S. Department of Justice notified JPMorgan that the bank had “violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities,” according to the Huffington Post. In this quarters report, JPMorgan made the disclosures with the SEC. The estimate of legal losses of the bank is in excess of $6.8 billion. This investigation follows President Obama’s announcement that companies who broke the law and financed the housing bubble that caused the great recession and financial crisis would be punished.

JPMorgan Being Investigated Over MBS by

What

 job title, keywords

Where

 city, state, zip



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


Tagged: ,

Jaan Posted by on August 7, 2013. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Medical Malpractice Defense Associate
USA-NY-White Plains

Our client is currently seeking a Defense Medical Malpractice Associate with the following: JD from an accredited law school Must be admitted to practice in the state of New York 2-...