Exclusive - JPMorgan to face new suit over mortgage securities: sources

NEW YORK (Reuters) - U.S. prosecutors in California are planning to announce charges against JPMorgan Chase & Co. as early as Tuesday for activities related to the bank's pre-crisis mortgage-backed securities issuance, sources familiar with the matter said on Monday.

The bank disclosed in August it was under parallel civil and criminal investigation by authorities in the U.S. Attorney's Office for the Eastern District of California.

The firm said it had received a notice from the civil division in May that the division had concluded the bank violated federal securities laws in connection with subprime and other risky mortgage securities it sold between 2005 and 2007.

 

A spokesman for JPMorgan, Brian Marchiony, declined to comment.

(Reporting by Aruna Viswanatha in Washington and Emily Flitter and David Henry in New York; Editing by Gary Hill)