The U.S. Department of Justice is investigating JPMorgan Chase & Co, the biggest bank in America by assets, over its offerings of mortgage-backed securities, Reuters reports.
JP Morgan on Wednesday announced that the DOJ's civil division notified the bank in May that it had "preliminarily concluded that the firm violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities during 2005 to 2007," according to the report.
The front of one of the JPMorgan Chase & Co. buildings is shown during the annual meeting Tuesday, May 21, 2013, in Tampa, Fla. It's a pivotal day for Jamie Dimon, head of the country's biggest bank, his shareholders will vote whether to strip him of his role as bank chairman. Credit: AP
In a quarterly filing with the Securities and Exchange Commission (SEC), JPMorgan reportedly made the disclosures openly.
"JPMorgan also raised its estimate of possible legal losses in excess of reserves to $6.8 billion at the end of June from $6 billion three months earlier," Reuters' report adds.