JP Morgan whistleblower witnessed ‘massive criminal securities fraud’ in bank’s mortgage operations | Business Standard News

| November 12, 2014 | 0 Comments

JP Morgan whistleblower witnessed ‘massive criminal securities fraud’ in bank’s mortgage operations | Business Standard News.

Alayne Fleischmann, the woman who cost JPMorgan 9 billion US dollars with her testimony, said that she witnessed “massive criminal securities fraud” in the bank’s mortgage operations as it was entering financial crisis.

According to Stuff.co.nz, Fleischmann said in an interview with Rolling Stone that her attempts to stop the bank’s sale of dodgy loans were repeatedly silenced.

She said that it was like watching an old lady get mugged on the street, adding that she thought to herself that she couldn’t sit any longer.

Fleischmann’s review of random loan samples revealed that about 40 per cent were based on overstated incomes.

However, when she and the others started to raise their concerns about the fraud, they were repeatedly ignored.

Fleischmann, who was dismissed from the bank in 2008, began working with US prosecutors who were investigating JPMorgan in 2012.

Category: State of the Nation

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