SEC Targets JPMorgan For Possible MBS Enforcement Action

Posted by Orb Staff on March 01, 2012 No Comments
Categories : Residential Mortgage

11029_moneywall SEC Targets JPMorgan For Possible MBS Enforcement Action JPMorgan Chase & Co. has become the latest financial institution to report that it is being targeted by the U.S. Securities and Exchange Commission (SEC) for possible enforcement actions related to mortgage-backed securities (MBS) transactions.

Reuters reports that JPMorgan, the nation's largest bank, announced in a regulatory filing that the SEC has notified it via a ‘Wells notice’ that investigations were under way and enforcement actions might occur in the near future. The SEC actions focus on two separate MBS transactions that took place prior to the 2008 economic crash.

JPMorgan is the third financial institution this week to report that it received an SEC Wells notice, following announcements made by Goldman Sachs and Wells Fargo.

Furthermore, JPMorgan also acknowledged it is answering questions from other federal government agencies regarding the Oct. 31, 2011, collapse of commodities firm MF Global Holdings Ltd. JPMorgan was responsible for handling MF Global accounts that are part of an investigation for more than $600 million in missing funds.

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