JPMorgan Chase, the nation’s largest bank, said Wednesday it is being investigated by the civil and criminal divisions of the Justice Department over the sale of mortgage-backed securities in the lead-up to the financial crisis.
The investigation is the latest sign that federal prosecutors and regulators are not letting up in their efforts to hold Wall Street accountable for actions related to the crisis. It also means that big banks may have to contend with the legal reckoning, which has already cost them hundreds of billions of dollars, for years to come.
In a quarterly filing Wednesday, JPMorgan said the Justice Department’s Civil Division notified the company in May that it had preliminarily concluded that the firm broke federal laws in offerings of subprime and other nonconforming residential mortgage-backed securities from 2005 through 2007.
The company added that it had also received and responded to “a number of subpoenas and informal requests” from federal and state authorities concerning every aspect of the packaging and sale of mortgage securities.