Oct 23 At least nine banks face probes by the
U.S. Department of Justice into their sales of mortgage-backed
securities as part of an effort by the task force that reached
the $13 billion agreement with JPMorgan Chase & Co, the
Financial Times reported.
Citing people familiar with the matter, the newspaper said
the banks include Bank of America Corp, Citigroup Inc
, Credit Suisse Group, Deutsche Bank,
Goldman Sachs Group Inc, Morgan Stanley, Royal
Bank of Scotland, UBS, and Wells Fargo & Co
Document requests and discussions between the banks and
government have picked up recently after Eric Holder, the U.S.
attorney-general, indicated publicly that more mortgage-backed
security lawsuits were coming by the end of the year, the FT
Most of the probes are looking for civil violations for
allegedly misleading buyers of residential mortgage-backed
security, not criminal sanctions, the paper said.
Morgan Stanley faces a civil investigation by the Northern
District of California and state attorneys, while RBS is under
investigation by the US attorney's office in Massachusetts, the
FT said. ()
Credit Suisse faces separate probes by Colorado and New
Jersey, the paper added.
Prosecutors in Brooklyn and Colorado are investigating
Citigroup, and UBS, Deutsche Bank and Wells Fargo are under
investigation by other US attorneys' offices, it said.
JPMorgan has reached a tentative $13 billion deal with the
U.S. Justice Department and other government agencies to settle
investigations into bad mortgage loans the bank sold to
investors before the financial crisis.