JPMorgan Chase is one of several banks that have received federal requests for information about their trading in mortgage-backed securities after the financial meltdown, according to a new report
JPMorgan Chase is one of several banks that have received federal requests for information about their trading in mortgage-backed securities after the financial meltdown, according to a new report.
A report by Bloomberg, citing anonymous sources, said the nation’s largest lender was under scrutiny along with UBS, Barclays, Citigroup, Deutsche Bank, Royal Bank of Scotland, Morgan Stanley and Goldman Sachs.
JPMorgan disclosed to its shareholders in August that it had received subpoenas and requests for information from the special inspector general for the Troubled Asset Relief Program, the U.S. Attorney’s Office in Connecticut and the Securities and Exchange Commission.
The probe followed the January 2013 arrest of Jesse Litvak, managing director of investment banking firm Jeffries & Co., on charges that he defrauded customers of more than $2 million in trading on residential mortgage-backed securities, according to Bloomberg. Six of Litvak’s alleged victims were investment firms established by the Treasury Department in response to the financial crisis, Bloomberg reported. Litvak has pleaded not guilty to the charges.
Spokespersons for the banks named in the probe and the U.S. Attorney’s Office declined to comment, Bloomberg reported.
A report by Bloomberg, citing anonymous sources, said the nation’s largest lender was under scrutiny along with UBS, Barclays, Citigroup, Deutsche Bank, Royal Bank of Scotland, Morgan Stanley and Goldman Sachs.
JPMorgan disclosed to its shareholders in August that it had received subpoenas and requests for information from the special inspector general for the Troubled Asset Relief Program, the U.S. Attorney’s Office in Connecticut and the Securities and Exchange Commission.
The probe followed the January 2013 arrest of Jesse Litvak, managing director of investment banking firm Jeffries & Co., on charges that he defrauded customers of more than $2 million in trading on residential mortgage-backed securities, according to Bloomberg. Six of Litvak’s alleged victims were investment firms established by the Treasury Department in response to the financial crisis, Bloomberg reported. Litvak has pleaded not guilty to the charges.
Spokespersons for the banks named in the probe and the U.S. Attorney’s Office declined to comment, Bloomberg reported.
