JP Morgan in lending probe

City A.M. Reporter
JP MORGAN Chase, the biggest US bank by assets, said yesterday it is being investigated by civil and criminal divisions of the US Department of Justice over offerings of mortgage-backed securities.

The civil division gave the company a notice in May that it had preliminarily concluded that the firm violated federal securities laws in offerings of subprime and Alt-A residential mortgage securities during 2005 to 2007, JPMorgan said in a quarterly filing with the SEC.