JPMorgan faces new lawsuit over subprime mortgages: news report
AFPWASHINGTON--The U.S. justice department is preparing to file a civil lawsuit against banking giant JPMorgan Chase over its handling of “subprime” mortgages after settlement talks broke off, the Wall Street Journal said late Monday.
September 25, 2013, 12:08 am TWN
The bank and the justice department broke off attempts to reach a settlement because they failed to agree on the size of a potential fine, the U.S. newspaper reported, citing a person familiar with the matter.
A spokesman for the bank declined to comment on the report to AFP.
The investigation focuses on the sale of mortgage-backed securities between 2005 and 2007, ahead of the 2008 housing bust.
Risky “subprime” mortgages are blamed for the collapse of the housing market, which sparked a financial crisis and plunged the U.S. into a deep recession in 2008.