JPMorgan faces probe over mortgages


The US Department of Justice has opened up a new legal probe into the sale of a number of JPMorgan’s mortgage-backed securities.
New investigations into the firm come as the Obama administration cracks down on supposed criminal activity in the American banking sector, which has been plagued by scandals since the 2008 financial crisis.
JPMorgan in particular has been a subject of scrutiny because of its $6 billion (£3.8 billion) loss that came after a series of trading blunders.
The mortgage-backed securities in question date back to between 2005 and 2007 and the institution said it would be cooperative with any investigations that take place.
US attorney general Eric Holder said the administration “will continue to take an aggressive approach to combating financial fraud and uncovering abuses in the residential mortgage-backed securities market”.
In related news, JPMorgan has raised estimates of the amount of money it lost through legal operations in the year to June to $6.8 billion – up by $800 million.

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