JPMorgan Trader Back at Work After a Year on Leave Amid Probesby
Joshua Banschick, a mortgage-bond trader at JPMorgan Chase & Co., has returned to work nearly a year after the bank placed him on leave amid government probes into that market.
Banschick confirmed he was back at the bank this week but declined to comment further when reached by phone Wednesday. JPMorgan spokesman Brian Marchiony declined to comment on Banschick’s return.
Trading in mortgage-backed securities and other securitized debt came under scrutiny after former Jefferies Group LLC bond trader Jesse Litvak was accused of criminal securities fraud for lying to clients in transactions involving taxpayer bail-out dollars. Litvak was convicted last year. A federal court is reviewing his appeal.
Banks including Nomura Holdings Inc., Deutsche Bank AG, Barclays Plc, Royal Bank of Scotland Group Plc and Morgan Stanley have received regulatory inquiries or have conducted internal sweeps resulting in traders being investigated, terminated, laid off or placed on leave, people with direct knowledge have previously said.