Prosecutors are pursuing criminal charges against executives from the Royal Bank of Scotland (RBS) and JP Morgan for alleged illegal activities.
Police are currently investigating the company’s role in selling supposedly flawed mortgage security packages, the Wall Street Journal reports.
Federal agents are scrutinising a £2billion deal that RBS made in 2007. Regarding JP Morgan, the agents are turning their attentions to different residential mortgage deals. Both companies declined to comment on the legal case.
Reuters reported: “People familiar with the probes said officials were trying to determine whether the bankers ignored warnings from associates that they were packing too many weak mortgages into investment offerings and whether they can prove that constituted fraud.”
The case against JP Morgan had been stalled, according to Wall Street Journal. The delay is caused by prosecutors who have been debating whether they had enough evidence to charge individual employees. However, they now appear to have picked up a new lead.
This case could be a landmark in the history of the American legal system, according to the International Business Times.
They reported: “The cases, if filed, could represent the highest-profile prosecutions of Wall Street employees since the financial crisis, the lack of which has incensed Democrats and Republicans alike.”