How did JPMorgan Chase get from a well-respected, profit-making bank to the entity that now needs to pay $13 billion for its role in issuing faulty mortgage-backed securities? The Department of Justice (DOJ) says that it all began as far back as two years before the financial crisis.
The DOJ revealed the results of its yearlong investigation into the financial services firm’s past doings on Nov. 19, which laid the groundwork for the landmark settlement between the two parties. According to DOJ officials, the investigation uncovered that JPMorgan knowingly ignored red flags. According to the investigation, executives were made aware of the indiscretions at meetings as early as 2006 but continued selling the shoddy mortgage-backed securities anyway.