JPMorgan Chase (JPM) put another mortgage-bond trader on leave in the latest string of suspicions amid regulatory scrutiny of the market, according to an article in Bloomberg.
The employee, Joshua Banschick, was told not to come in during the past week, said the people, who asked not to be named because the decision wasn’t public. The trader has worked at JPMorgan since 2008, after spending about a year at Bear Stearns Co., the securities firm bought by the bank that year with assistance from the Federal Reserve, according to Financial Industry Regulatory Authority records.
The article explained that recently JPMorgan has been responding to and cooperating with request for information and subpoenas from U.S. agencies.
They relate to “among other matters, communications with counterparties in connection with certain secondary market trading in residential and commercial” mortgage securities, the bank said.
