U.S. Department of Justice Department to strengthen up the probe into Bear Stearns mortgage trading operation, rising to the financial crisis in recent weeks, adding JP Morgan Chase and Co, legal issues, according to three sources familiar with the situation.
JP Morgan bought Bear Stearns failed (Bear
Probe messages, this is the first time in February, Reuters reported picking up steam in recent weeks. Justice Department officials have taken at least three people, including former Bear Stearns employees, mortgage-backed securities, according to the sworn testimony of one of the sources.
Justice Department spokeswoman declined to comment. JP Morgan Chase spokesman declined to comment.
Developments under the new mortgage-related investigations by the Eastern District of California. All CEO Jamie Dimon is fresh obstacles, are working to restore the credibility of bank risk control after losing more than $ 620 million U.S. dollars in 2012, in its so-called "London Whale" derivatives trading.
Eastern District of California U.S. prosecutors have launched criminal and civil investigations into the bank's mortgage-backed securities, the bank said on Wednesday.
In these investigations has ended, government lawyers to provide mortgage bonds in 2005-2007 by subprime mortgages and other residential mortgage lending support, JPMorgan Chase is committed civil violations of securities laws.
A source familiar with the situation said on Thursday, the California probe involving mortgage bonds by JP Morgan itself, rather than those by the company, the largest U.S. banks during the financial crisis to buy.
In the "London Whale" the collapse of banks working with the U.S. Securities and Exchange Commission reached a settlement to the end of this year, it will pay a penalty and admitted fault, according to people familiar with the matter.
After the financial crisis, 17 months later, U.S. President Barack Obama has set up a task force, federal and state law enforcement officers to bring the case more than five years, the Government finally get some traction on wrongdoing in housing finance.
In addition to JP Morgan Chase mortgage investigation, the Justice Department on Tuesday filed civil actions against Bank of America, more than 850 million U.S. dollars in mortgage securities.
Mortgage Co-Chair of the Working Group, the New York State Attorney General Eric Schneiderman, last Thursday, said: "My office is expected in the coming months to take further action."
Morgan Justice Department probe is equipped with the latest in the case in the past, by the New York Attorney General and the U.S. Securities and Exchange Commission.
Schneiderman sued JP Morgan Chase last October alleged mis-selling of housing loans in 2006 and 2007 Bear Stearns pools. In this case, progress. In November, JP Morgan Chase agreed to pay $ 296.9 million to settle U.S. Securities and Exchange Commission complained of improper sales of mortgage-backed securities.
JP Morgan also revealed that it faces a number of government entities, collections of consumer credit card debt, risk control, anti-money laundering practices and systems management requires capital to absorb losses probe and sanctions.
Install Legal Bills
Assets of the largest banks in the U.S., JP Morgan Chase, may have no choice, but the financial crisis continued public anger, encourage bank regulators impose tough and expensive safety requirements, with the authorities to seek deals.
The high cost of its legal continue longer than many people expected, you may see Bank analyst Charles Peabody of Portales Partners last Thursday, said in a research report.
Although JP Morgan Chase has settled some of the issues and book $ 3 billion in legal fees, in the 12 months through June, the company has said it is still more than the cost of litigation undisclosed litigation reserves $ 6.8 billion, up about 1.5 billion, compared with the same time it had estimated a year ago.
Wall Street analysts expected revenues of more than $ JPM $ 2.2 billion in net profit this year, so the banks can cover costs. But the prospect of continuing legal fees might bring those estimates, Peabody forecasts.
 



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