WASHINGTON (Bloomberg) -- JPMorgan Chase & Co., the largest U.S. bank, said it’s in talks with the Department of Justice about possible racial disparities in markups that auto dealers charged on loans.
The discussions focus on “potential statistical disparities” on debts originated by dealers and purchased by the bank, JPMorgan said Tuesday in an annual regulatory filing. It didn’t specify whether the firm is a target of the probe.
The Justice Department and U.S. Consumer Financial Protection Bureau have been investigating auto lenders for possible racial discrimination, after finding “significant risk” of unfair pricing, senior officials said in 2013. The CFPB warned that year that large banks may face lawsuits if they buy discriminatory loans made by dealers.
JPMorgan CEO Jamie Dimon has had to contend with new investigations involving the firm since pushing to resolve a litany of probes and lawsuits in 2013 that culminated in more than $23 billion in settlements. Last year, the company settled regulatory claims that traders sought to rig foreign-exchange benchmarks. The Justice Department’s related case is still open.