Philly Prosecutors Investigating JPMorgan Chase
The New York Times reports that banking giant JPMorgan Chase has revealed it faces both criminal and civil litigation over whether it sold “shoddy” mortgage securities to investors.
Adding to scrutiny of the bank, federal prosecutors in Philadelphia are examining whether JPMorgan duped investors into buying troubled mortgage securities that later imploded, according to people briefed on the matter, who spoke on the condition of anonymity. The prosecutors are investigating whether JPMorgan churned out the mortgage-backed securities without ensuring that the investments met underwriting standards, the people said.
Scary. If JPMorgan Chase doesn’t watch out, the feds will make its executives live under “house arrest” in their own, opulent mansions.