Legal News

JPMorgan Being Investigated Over MBS
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

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.

  
What
Where




 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-Level Commercial Business Litigator

USA-CA-Los Angeles

Los Angeles office is seeking a commercial business litigation attorney with 2-5 years of experience...

Apply Now

Senior Level Litigator

USA-CA-Woodland Hills

Woodland Hills office is seeking a litigation attorney with 5-7 years of experience and a background...

Apply Now

Litigation Associate Attorney

USA-CT-Stamford

Stamford office of our client seeks litigation associate attorney with 3+ years of experience. The c...

Apply Now

RELEVANT JOBS

Attorney

USA-WA-Woodinville

The ideal candidate will have 2-3 years’ experience as an attorney, who is passionate about br...

Apply now

Legal Secretary / Paralegal

USA-UT-Ogden

Have need of a legal secretary / paralegal to prepare legal documents for court filing and estate pl...

Apply now

Medical Malpractice Associate

USA-CA-Los Angeles

Downtown Los Angeles medical malpractice defense firm seeks 2-4 year associate attorney with persona...

Apply now

Immigration Attorney

USA-CA-Anaheim

Responsibilities: Make appearances in immigration court at Master Calendars and Individual Hea...

Apply now

SEARCH IN ARCHIVE

To Top