U.S. Readying Mortgage Suit Against JPMorgan: Reports
NEW YORK (TheStreet) -- JPMorgan Chase
JPMorgan disclosed in August it "is responding to parallel investigations being conducted by the Civil and Criminal Divisions of the United States Attorney's Office for the Eastern District of California relating to MBS offerings securitized and sold by the Firm and its subsidiaries. In May 2013, the Firm received a notice from Civil Division stating that it has preliminarily concluded that the Firm violated certain federal securities laws in connection with its subprime and Alt-A residential MBS offerings during 2005 to 2007."
JPMorgan faces several other mortgage-related inquiries. Last week, the bank paid more than $1 billion to several different regulators to resolve charges tied to the London Whale trading losses and illegal credit card practices.
JPMorgan shares were down just over 1% to 50.91 in early trading Tuesday.
-- Written by Dan Freed in New York.