JPMorgan Chase & Co. (JPM), the biggest U.S. bank, said it’s under federal criminal investigation for practices tied to sales of mortgage-backed bonds that the Justice Department has already concluded broke civil laws.
The department’s civil division told the bank in May of its preliminary finding after examining securities tied to subprime and Alt-A loans, which were sold to investors from 2005 through 2007, JPMorgan said yesterday. The office of U.S. Attorney Benjamin Wagner in Sacramento, California, has been conducting civil and criminal inquiries, the bank said.
“In mid-2006, I discovered that over 60 percent of these mortgages purchased and sold were defective,” Bowen testified on April 7 before the Financial Crisis Inquiry Commission created by Congress. “Defective mortgages increased during 2007 to over 80 percent of production.”
Oh yeah — that was Citibank — remember the FCIC “hearings” that I reported on extensively?
Who has faced sanction for the actions uncovered by the FCIC?
So now they want to investigate criminally?
Exactly why weren’t charges filed immediately when this under oath testimony was given?
Is not representing something to be other than what it is for the explicit purpose of getting someone to give you money under false pretense a crime?
Last time I looked it sure was, and the government cannot claim that this is some “new revelation.”
Wake me up when the indictments issue.