SEC Subpoenas JPMorgan Over Failed Mortgages

JPMorgan Chase & Co has received a subpoena from the U.S. Securities and Exchange Commission over failed mortgages, Bloomberg said, citing a person familiar with the investigation.

The SEC is probing banks including Credit Suisse Group AG for allegedly failing to share refunds from sellers of faulty debt, Bloomberg said.

JPMorgan and SEC declined to comment to Bloomberg. Reuters could not immediately reach either of the parties.

The SEC subpoenaed Credit Suisse this week for documents on securitized home loans, according to court documents filed on Thursday by bond insurer MBIA Inc in a lawsuit against the Swiss bank.

(Reporting by Sakthi Prasad in Bangalore; Editing by Lisa Von Ahn)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[nothingchanges]

12:43 AM on 05/09/2011

JP? This is the SEC...........

Remember that conversation we had three years ago, about how long it would take you to completely eradicate any evidence of wrongdoing, and the amount of paperwork you would have to shred without calling attention to yourself?

Are you done yet? Can we come over and investigate?

I've read there is a saying in the legal profession............Justice delayed is Justice denied.

IMPO..........Justice is no longer possible on this particular issue. Too much time has passed, too much possibility of collusion.

[2garen]

10:37 AM on 05/09/2011

Love this.
JP? This is the SEC.....
We have stalled the American Public for three years now and we are kinda being pushed to come and visit you...Can you hurry it up?

[April22]

06:32 PM on 05/07/2011

Oh, the SEC is finally doing its job?!

As if they were completely unaware of how this whole fiasco even occurred.

Now they are giving the appearance of being a force to be reckoned with and have some teeth.

Please.

Too much, too little, too late, as usual.

[mp905]

08:45 AM on 05/08/2011

It sure is frustrating.

I get the impression that the SEC has been doing its job all along. It is just that the real job of the SEC is not to rein in the excesses of Wall Street but rather to find suitable scapegoats to make sure small investors keep their money in the game. Martha Stewart? JP Morgan? these are visible but small players... how about a really big player like Bank Of America? Not going to happen.

[whitemale08]

01:21 AM on 05/07/2011

No more slaps-on-the-wrists...we need full SHUT DOWNS of these bankrupt criminal failures!

Restore Glass-Steagall IMMEDIATELY to shield taxpayers from all of JP Morgan's losses!

[itstimetotakeitback]

12:22 AM on 05/07/2011

Buy Physical Silver.. Take JP Morgan OUT!!

[Peanut Santiago]

09:47 PM on 05/06/2011

I just thought of something.

No matter what the politicians and economists say.....the Great Recession is still going strong on Main Street.
It never ended and for many it is getting worse.

At first we had stimuluses (stimuli?) and bailouts.
We had extra help for the unemployed.
We had federal money given to the states.

In short we HAD a federal government that (right or wrong) TRIED to help end the recession.

Now?
The recession is NOT ending.
Things for the most part are NOT getting better.
Okay, the oligarchs and corporations are doing great....but not the lower classes (most of the people), states, cities.....

The federal government....politicians seem to be FINALLY waking up.

They have to do SOMETHING.
And that means, if they get desperate enough, they will follow the money.....

The PEOPLE won't allow them to touch medicare (for example)....OR they will get voted out.

The politicians have to follow the money........
And where is the money?
Banks, Wall Street, and corporations.

It is a sign of DESPERATION that they are even bothering with Deutsch Bank and J.P. Morgan at all.
Even bought and paid for politicians can get DESPERATE!!!

That tells us ordinary people that things are BAD....much worse than they are admitting.

[mdsmith013]

05:13 PM on 05/07/2011

The GOP has got to go. They don't believe in the government trying to help the economy!

[Maranda MassieGuthrie]

05:44 PM on 05/06/2011

well, now that the banks are back to business as usual it is time for the SEC to go in and get their share of the pie, not really to punish them, no b/c the are making profits and they want some too..imagine if they actually had to pay a real fine!

[Sundialsvc4]

01:25 PM on 05/06/2011

Yawn.

My, oh my. We're getting subpoenaed by the SEC. Oh dear. The end of the world as we know it, no doubt.

Golly, gee, gosh. They might "suspect" that we might have been involved in, even, billions of dollars of crime. Golly. Oh my.

But the dog is utterly toothless and always will be. Lots of loud barking (growing ever louder as the elections draw near), and then, say, a $7 million penalty and that's that. No legal trial. Nothing subject to discovery. No opportunity for anyone to actually sue us because it's all smothered in the "settlement."

When you can earn hundreds of billions of dollars in securities fraud and the only price that you actually pay for doing it is a handful of millions, then that is a cost that is so low as to be written-off along with the costs of paper and ink pens. It costs even less than bribery.

Obviously, it would be an entirely different game if the Securities and Exchange Act were actually treated as Law and if a corporation might, say, lose its entire charter to exist as a corporation if found guilty in a criminal trial for the violation of that Act. Yes, it would be an entirely different game. But in half a century of experience it has always been, "slap, slap, settle." "Slap, slap, settle." An utterly toothless dog that's all bark, and a thick book of "law" that means ... nothing.

[blackranger]

05:00 PM on 05/06/2011

It should be a "privilege to be a US corporation as that gives a corporation access to US capital thru our stock market. Time to tell the corporations, if you move your headquarters, you are no longer a US corporation, you may no longer bid on contracts in the US without paying a premium and most of all, if you are a financial company, US pension funds, 401Ks and other financial savings cannot be held by your corporation.

[mp905]

08:48 AM on 05/08/2011

Fanned

[bkerensa]

12:47 PM on 05/06/2011

JPMorgan will get off thats all there is to it and I bet they have people shredding documents right now anyways.

[vippy]

12:04 PM on 05/06/2011

Oh yes, let me see, they are going after this bank now but nothing will happen since it is a US Bank.
Only the Deutsche Bank will feel the wrath of our justice. 

[Oginikwe]

11:10 AM on 05/06/2011

I'll get excited when something actually happens. The revolving door between the SEC and the "too-big-to-fail" banks has been preventing any action.

[Lolie Culley]

10:34 AM on 05/06/2011

Keep going SEC, next will be Wells Fargo, Bank of America, Goldman Sachs, Citi Group, and more. They are all corrupt and committed fraud. Jail time for the CEO's will ease the pain of the American people and give back people's home to generate taxes for our local cities, counties, and municipalities.

[knewsreply]

11:08 AM on 05/06/2011

Well said. I was going to add a comment, but you already said what I was going to say, with care to list most of the big players. You even included CEOs, who can lose money for their company, be fired, or completely lose their company and still receive a paycheck - often with a large bonus or severance pay.