NY Attorney General Digs Into Mortgage Deals Of 8 Banks

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Banking and Credit News

May 14, 2010 Friday

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NY Attorney General digs into mortgage deals of 8 banks

The New York Attorney General’s office has initiated a probe into mortgage securities deals of eight banks, including Citi (NYSE:C), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), a knowledgeable source told Reuters on Thursday.

The investigation seeks to establish whether the banks have deceived global rating services such as S&P, Moody’s and Fitch about the quality of mortgage securities they were selling, said the source who refused to be named as the probe is not public.

The list of banks under investigation is further complemented by Credit Agricole (EPA:ACA), Credit Suisse (VTX:CSGN), UBS (SWF:UBSN), Deutsche Bank (ETR:DBK) and Merrill Lynch, which has merged with Bank of America Corp (NYSE:BAC), the source added.

May 14, 2010