JPMorgan Investigated by United States’ Justice Department Over Mismanagement of Mortgages

JPMorgan Chase is this country’s largest bank and right now they are being investigated by both the civil and criminal divisions of the Justice Department over allegations of them selling illegal mortgage-backed securities.

The investigation being conducted by the Justice Department is a very good sign because it shows that banks are now going to need to be held accountable for any illegal actions they pursue. Big banks, just like another other business, must follow any laws related to running a business.

It was reported by the Civil Division that the firm broke several laws in regards to subprime mortgages and other types of mortgages. They had been offering mortgage securities that they weren’t supposed to under the law. They were of a bad quality.

The malicious bank was issued several subpoenas and informal requests from the federal government after it was discovered what they were doing. They concerned all the packaging and selling of mortgage securities that they were doing. However, there have been no formal charges filed against JPMorgan as of yet. But they will need to heed the warnings that the government has sent to them.

This task force, the Civil Division, discovered this during January 2012 after they conducted an investigation into JPMorgan’s sale of mortgage securities to investors.

Bank of America was also charged with misconduct; the bank is very mad over the task force’s allegations. They were also charged with selling bad quality mortgage securities to investors.

However, the task force is still being encouraged to uncover any crimes being committed by major corporations, banks, etc. Their actions really benefit ordinary citizens.

Wall Street did have a hand in causing the major decline in the economy as well as the bursting of the housing bubble. While executives still haven’t been made to feel the full consequences, all the lawsuits being filed against major corporations now is a good sign.