JPMorgan Says SEC Weighing Suit Over MBS Dealings

Law360, New York (February 29, 2012, 1:54 PM EST) -- JPMorgan Chase & Co. faces investigations and a possible civil suit by the U.S. Securities and Exchange Commission over whether the firm misled investors in offerings of mortgage-backed securities, the bank said Wednesday.

The investigations were disclosed in the company’s annual filing with the SEC. They relate to the firm’s due diligence and disclosures for two mortgage-backed securities transactions, and to settlements of claims against the originators of loans that JPMorgan unit Bear Stearns Cos. Inc. packaged into securities, the company said.

JPMorgan said it had...
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