Wall Street Banks face probe

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The New York attorney general (AG) has requested information and documents, in the recent weeks, from three major Wall Street banks. This is in regards to their mortgage securities operations during the credit boom, and indicating the existence of a new investigation into practices that has caused mortgage losses in billions.

According to a few people briefed on the matter but not authorizes to speak publicly, Eric T Schneiderman?s office has requested meetings with representatives from Bank of America, Goldman Sachs and Morgan Stanley.

The inquiry will be broad with AG?s requests for information covering many aspects of banks? loan pooling operations. They bundled thousands of home loans into securities that were then sold to investors such as pension funds, MFs and insurance firms. It is unclear which parts of the Byzantine securitization process Schneiderman is focusing on.

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