Joe Lynam in the City of London
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JP Morgan 'record fine' explained

US investment bank JP Morgan is facing a record fine of more than $13bn - some £8bn - to settle investigations into its mortgage-backed securities.

The potential settlement comes a month after the company was fined £1bn for the "London Whale" scandal, in which a former employee placed huge disastrous bets on the financial markets.

The BBC's Joe Lynam explains how the bank's alleged knowledge of its risky mortgage-backed assets helped contribute to the 2007 global financial crisis.

  • 20 Oct 2013
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