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September 1, 2010
LENGTH: 167 words
HEADLINE: Massachusetts regulator requests research on subprime lenders
BYLINE: Thomas Orgren
Massachusetts Secretary of State William Galvin issued subpoenas to UBS AG unit UBS Securities LLC and Bear Stearns Cos. unit Bear Stearns & Co. as part of an investigation into whether analysts ignored the mounting financial problems of subprime lenders.
Massachusetts Secretary of State William Galvin said March 13 that he issued subpoenas to UBS AG unit UBS Securities LLC and Bear Stearns Cos. unit Bear Stearns & Co. Inc. as part of an investigation into whether analysts ignored the mounting financial problems of subprime lenders, The Associated Press reported March 13.
The subpoenas seek documents related to the two companies’ research about subprime lenders, including New Century Financial Corp.
“They’ve both been issuing very rosy outlooks on New Century until very recently,” Galvin told the AP. “The egregious nature of the errors at a time when these lending firms were experiencing such difficulty raises some very serious questions. … You can’t divorce the lenders from those who offer them comfort and support.”
Galvin requested that the information be returned by March 27. He did not rule out issuing subpoenas to other Wall Street firms as well.
Neither UBS nor Bear Stearns provided immediate comment to the AP regarding the subpoenas.
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