Jp Morgan Chase Bank Fraud Essay

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JPMorgan Chase Bank has faced several lawsuits in recent years. They have been hit with cases concerning fraudulent misrepresentation, bribery, and many things in between. By studying the accusations the company has faced, one receives a better understanding of who is really handling their money. An act of fraudulent misrepresentation cost JPMorgan the fine of a lifetime. For years the banking company sold subprime mortgages to companies and home owners. A subprime mortgage is a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages (Carther, S. (2007, September 2). What is a subprime mortgage? Retrieved August 2, 2015.). In some cases, there were obvious red flags that should suggest the seller would not be able to afford to their mortgage. This lost many people money because they were unable to pay their growing debts. This did not only effected the people involved, but it rocked the whole country’s economy. It was losses on mortgage securities like those involved in this case that triggered a loss of confidence in the U.S. banking and financial system (Irwin, N. (n.d.). Everything you need to…show more content…
JPMorgan has been accused of bribery several times, but this paragraph will focus on the hiring of children of Chinese leaders. Federal officials investigated whether the bank committed a form of bribery by hiring the kids of senior Chinese leaders. JPMorgan hired the son of a former Chinse banking regulator. After this the bank snagged some coveted assignments from a Chinese conglomerate. According to The New York Times, The Hong Kong office of JPMorgan also hired the daughter of a Chinese railway official. The official later worked closely with JPMorgan on making their company, The China Railway Group, public. Together, they raised 5 billion dollars once the company was

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