JP Morgan, SEC In CDO Deal Discussions

JP Morgan Chase is in talks with the Securities and Exchange Commission (SEC) to resolve a probe into its role in selling collateralized debt obligations (CDOs), The Wall Street Journal reports. The lender is in discussions with staff of the SEC enforcement division.

Banks are under probe for the creation and sales of CDOs, complex pools of mortgages that investors bought into. JP Morgan received a subpoena from the SEC over failed mortgages as part of an investigation into whether banks, including Credit Suisse, failed to share refunds from sellers of faulty debt, adds Bloomberg.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Bloomberg.