JPMorgan says being investigated by DOJ over mortgages

[kevindavis007]

JPMorgan Chase & Co, the biggest U.S. bank by assets, said on Wednesday it is being investigated by civil and criminal divisions of the U.S. Department of Justice over offerings of mortgage-backed securities.

The civil division gave the company a notice in May that it had preliminarily concluded that the firm violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities during 2005 to 2007, JPMorgan said.

The company made the disclosures in a quarterly filing with the Securities and Exchange Commission.

JPMorgan also raised its estimate of possible legal losses in excess of reserves to $6.8 billion at the end of June from $6 billion three months earlier.

http://www.cnbc.com/id/100928557

As someone who banks at Chase, I'm a little concerned in what the DOJ is doing. This smells like a shakedown imho.

[Oceander]

JPMorgan Chase & Co, the biggest U.S. bank by assets, said on Wednesday it is being investigated by civil and criminal divisions of the U.S. Department of Justice over offerings of mortgage-backed securities.

The civil division gave the company a notice in May that it had preliminarily concluded that the firm violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities during 2005 to 2007, JPMorgan said.

The company made the disclosures in a quarterly filing with the Securities and Exchange Commission.

JPMorgan also raised its estimate of possible legal losses in excess of reserves to $6.8 billion at the end of June from $6 billion three months earlier.

http://www.cnbc.com/id/100928557

As someone who banks at Chase, I'm a little concerned in what the DOJ is doing. This smells like a shakedown imho.

Of course it's a shakedown.