(RT) The biggest US bank is under investigation by the country's Department of Justice over whether it knowingly sold shoddy mortgage bonds prior to the financial crisis and is in violation of securities laws.
JPMorgan Chase announced Wednesday in a quarterly regulatory filing it is under criminal and civil investigation. The bank “continues to respond to other MBS [mortgage-backed security] related regulatory inquiries," the filing said.
The US’s largest bank is responding to the ‘parallel investigations’ by both the US Attorney’s Office and the Eastern District of California for overstating the quality of mortgages they sold to investors between 2005 and 2007, Reuters reports.
Neither the bank nor the federal branch have provided comment on the case.
The US is investigating JPMorgan under the Financial Institutions Reform, Recovery and Enforcement Act, according to Bloomberg.
Last October, New York attorney general Eric. T. Schneiderman accused the bank of selling securities that caused roughly $22.5 billion in investor loss.
President Obama's federal mortgage task force has aggressively been going after banks and financial institutions to hold them accountable for any wrongdoing in the subprime mortgage boom and the subsequent burst which brought the American economy crashing down and into recession.
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