Tuesday, May 17, 2011

Fw: News Alert: New York State Investigates Banks' Role in Fiscal Crisis

Breaking News Alert
The New York Times
Mon, May 16, 2011 -- 11:02 PM ET
New York State Investigates Banks' Role in Fiscal Crisis
Eric T. Schneiderman, the New York attorney general, has
requested information and documents in recent weeks from
three major Wall Street banks about their mortgage securities
operations during the credit boom, indicating the existence
of a new investigation into practices that contributed to
billions in mortgage losses.
Officials in Mr. Schneiderman's office have also requested
meetings with representatives from Bank of America, Goldman
Sachs and Morgan Stanley, according to people briefed on the
matter who were not authorized to speak publicly. The inquiry
appears to be quite broad, with the attorney general's
requests for information covering many aspects of the banks'
loan pooling operations. They bundled thousands of home loans
into securities that were then sold to investors such as
pension funds, mutual funds and insurance companies.
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