AP: Cuomo Investigating Eight Banks Over MBS

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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