JPMorgan probes customers, employers over possible PPP fraud

JPMorgan Chase has uncovered evidence that some of its customers and employees broke federal rules when obtaining and distributing billions of dollars in loans from one of the government's key coronavirus relief programs, according to an internal memo viewed by CBS MoneyWatch.

The nation's largest bank said it is conducting an internal investigation looking into a number of issues, including how the financial giant helped distribute money from the Paycheck Protection Program –– the $650 billion government relief initiative created under the Coronavirus Aid Relief and Economic Security Act.

JPMorgan is also working with law enforcement authorities who are also looking into the potential misdeeds. The bank said it believes some of the conduct by its employees may have broken the law.

"It's been nearly six months since the pandemic began, and during that time we've seen our people at their very best," the memo stated, which was issued to bank employees on Tuesday and which was signed by JPMorgan CEO Jamie Dimon and other top executives. "Unfortunately, we've also seen conduct that does not live up to our business and ethical principles — and may even be illegal."

This is a developing story.