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.Read the rest here.
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.
It is unclear which parts of the byzantine securitization process Mr. Schneiderman is focusing on. His spokesman said the attorney general would not comment on the investigation, which is in its early stages.
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3 comments:
Do you think anything justice-wise will come of this?
I have my doubts.
I don't know. If nothing else it will be bad publicity for those involved. But when prosecutors (who are usually political animals) announce a high profile investigation, they probably have at least some evidence in hand. They don't like to end up wearing egg on their face.
That is a valid point, John. About them having something in hand, but I am afraid I've become rather cynical anymore and it seems to me like justice isn't righteous anymore.
Hopefully I will be proved wrong in this case.
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