Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

JPMorgan Is Said to Put Mortgage-Bond Trader on Leave


bloomberg.com | December 5, 2014 

By Jody Shenn

JPMorgan Chase & Co. (JPM) put another of its mortgage-bond traders on leave, the latest in a string of suspensions amid regulatory scrutiny of the market, according to three people with knowledge of the move.

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.

Banschick, 29, who hasn’t been accused of any wrongdoing, declined to comment when reached on his mobile phone. Brian Marchiony, a spokesman for New York-based JPMorgan, said the bank declined to comment.

The mortgage-bond industry has come under scrutiny of regulators after former Jefferies Group LLC trader Jesse Litvak was accused and later convicted of securities fraud for lying to clients about what he charged them. JPMorgan has placed at least two other traders on leave, while Royal Bank of Scotland Group Plc and Nomura Holdings Inc. also have suspended traders, people with knowledge of those moves said at the time. It’s unclear why the decisions were made or whether any of the actions have been related.
Regulatory Requests

JPMorgan has been “responding to and continuing to cooperate with requests” for information and subpoenas from U.S. agencies, the company said last month in a Securities and Exchange Commission filing. 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.

The U.S. is building potential securities fraud cases against more mortgage traders after the Litvak conviction, two people with knowledge of the investigations said last month. As part of the probe, the government is examining a practice known as parking, where traders seek to skirt capital regulations or internal rules by selling bonds to accomplices with an understanding they’ll repurchase them later, one of the people said.

Litvak, whose attorneys said never made misrepresentations about “the nature or quality” of securities traded, was granted bail in October while he appeals the conviction. The U.S. Court of Appeals in Manhattan said the same month that Litvak raised “substantial” questions of law and fact that are “likely to result” in a reversal of the decision.


Back to December 2014 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

International Bloomberg Securitization Audits


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package