Royal Bank of Scotland JP Morgan and (RBS) executives are reportedly being probed by federal prosecutors over their participation in the sales of flawed mortgage securities, according to a report from the Wall Street Journal, which says that the probes in question are criminal investigations. The probe revolves around whether the bankers ignored warnings that they were packing too many weak mortgages into investment offerings, and whether this constitutes as fraud. If filed, it will be the the first case where employees have been pursued over the housing collapse.
JP Morgan and Royal Bank of Scotland (RBS) executives are reportedly being probed by federal prosecutors over their participation in the sales of flawed mortgage securities, according to a report from the Wall Street Journal, which says that the probes in question are criminal investigations. The probe revolves around whether the bankers ignored warnings that they were packing too many weak mortgages into investment offerings, and whether this constitutes as fraud. If filed, it will be the the first case where employees have been pursued over the housing collapse.