The bank said that the US Department of Justice is probing its role in the marketing of mortgage-backed securities pertaining to the same issue.
The prosecutors during their primary investigation found that the bank willingly marketed subprime loans packaged into securities, inspite of being aware that the assets were toxic in nature.
In a quarterly filing with the Securities and Exchange Commission (SEC), the bank said that the civil and criminal divisions of the US Attorney’s Office for the Eastern District of California have initiated parallel investigations.
Most recently, the federal prosecutors filed an $850m lawsuit against Bank of America (BofA) over the regarding mortgage backed securities and other mortgage-related matters.
Recently, US Bankruptcy judge Martin Glenn, and US District judge Victor Marrero, have jointly approved JP Morgan $546m settlement agreement with MF Global trustee, customers.
In May 2013, California’s attorney general Kamala Harris has filed a lawsuit against JP Morgan, accusing the firm for fraudulent execution and illicit debt-collection practices against tens of thousands of Californian denizens.
It seems that the JP Morgan legal woes do not seem to decrease, as the bank has also been sued by Florida-based Master Screens over artificially inflating Aluminum prices.
