FACE THE MUSIC

JPMorgan Faces Criminal Probe

JP Morgan Chase revealed in a regulatory filing Wednesday that the bank faces civil and criminal investigations over its dealing of shoddy mortgage securities that led to the 2008 financial crisis. It was the first time the bank has acknowledged the probe. The filing revealed that U.S. district attorneys have preliminarily concluded JPMorgan flouted federal laws by selling subprime mortgages from 2005–2007. The criminal investigation is in an earlier phase, and it’s not the only legal threat the bank faces. Federal prosecutors in Philadelphia are examining whether JPMorgan duped investors into buying worthless securities. All in all, the bank faces scrutiny from eight federal agencies, a state regulator, and two European nations.