The U.S. Securities and Exchange Commission (SEC) is reportedly planning to warn several major banks that they will be sued in connection to the sale of subprime mortgage-backed bonds in the period leading up to the 2008 economic crash.
The Wall Street Journal, citing unnamed sources, reports that the banks being targeted by the SEC include Ally Financial, Bank of America Corp., Citigroup, Deutsche Bank and Goldman Sachs. It is not certain whether the SEC will issue formal enforcement warnings, known as ‘Wells notices.’
The SEC and spokespersons for the banks declined to comment on the news report.