AP: Cuomo Investigating Eight Banks Over MBS

Posted by Orb Staff on May 13, 2010 No Comments
Categories : Residential Mortgage

The Associated Press is reporting that New York Attorney General Andrew Cuomo is investigating eight banks in regard to the information they provided ratings agencies about mortgage-backed securities.

Citing a person familiar with the matter, AP reporter Stephen Bernard says Cuomo's office is investigating Goldman Sachs, Morgan Stanley, UBS, Credit Suisse, Duetsche Bank, Citigroup, Credit Agricole and Merrill Lynch (now a division of Bank of America).

The investigation reportedly centers on whether the banks misled the agencies about the MBS risk in order to obtain stronger ratings.

SOURCE: Associated Press

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