Better late than never, I guess

This might turn out to be good news:

JPMorgan Chase said Wednesday it’s under federal criminal investigation over its sale of mortgage securities, potentially making the biggest U.S. bank by assets the first large financial institution to face criminal sanctions over securitization practices that contributed to the 2008 financial crisis.

The Justice Department told JPMorgan in May that prosecutors had “preliminarily concluded” that the bank violated civil securities laws related to mortgage securities it packaged and sold from 2005 to 2007, the bank disclosed in a quarterly securities filing. JPMorgan has already been sued over similar practices by Eric Schneiderman, New York attorney general, and has settled similar cases brought by the Securities and Exchange Commission.

Other large financial groups also have disclosed in securities filings they’re under U.S. investigation for their dealings in mortgage securities. Criminal investigations are underway against some banks, according to people familiar with the probes, introducing the possibility that criminal charges against a major financial institution for mortgage-related conduct could be filed — a potentially surprising development given prosecutors’ and securities regulators’ past statements suggesting that pre-crisis bad behavior didn’t necessarily equate to criminal wrongdoing.

H/T Seth Price.

3 Responses to Better late than never, I guess

  1. imhotep August 8, 2013 at 11:15 am #

    What matters here is how the corporate media reports this story. Then follows up on it. Did you know that Rupert Murduch owns 70% of the printed press in Australia? Me either. How much of our media does he own? We know that it’s enough to keep the Republican Party in control of the House.

  2. jawbone August 8, 2013 at 11:30 am #

    Ah, it’s not just Bank of America. Next up, Citi? There’s really only the Big Three Bad Banksters now, right? Or am I missing one or two?

    Suggestions in stories about BofA were that this is due to the new SEC head, Mary Jo White, who worked for most of these guys. There were –and still are until her actions prove her intent– deep concerns that her work for the Wall Street Big Banksters might mean she would continue the Obama administration’s tender care of the banksters, that nothing tangible would be done to the miscreants.

  3. jawbone August 8, 2013 at 11:32 am #

    Also, reminder of days of yore’s approach to fiscal industry’s malfeasance:

    Over 1000 FBI agents investigated savings and loan debacle; only about 120 FBI agents investigated mortgage scams.

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