JPMorgan and UBS said among banks in mortgage investigation

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JPMorgan and UBS are among banks that received federal requests for information about trades in mortgage-backed securities after the financial crisis, two people briefed on the matter said.

Bloomberg reports that the investigation is in early stages, said the people, who asked not to be named because the inquiries were confidential. JPMorgan disclosed the probe in an August filing, saying it received subpoenas and requests for information from the Securities and Exchange Commission, the special inspector general for the Troubled Asset Relief Program and the U.S. Attorney’s office in Connecticut.

The largest global banks lost billions of dollars on mortgage-backed debt during the financial crisis as U.S. home prices plunged and the market for such assets dried up. While the securities rebounded after the crisis, markets remained illiquid with wide spreads between bids from buyers and sellers.

Barclays, Citigroup, Deutsche Bank, Goldman Sachs, Morgan Stanley and Royal Bank of Scotland are also under scrutiny in the probe, the Wall Street Journal reported yesterday.

To access the complete Bloomberg article hit the link below:

JPMorgan, UBS Said to Be Among Banks in Mortgage Probe

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