SEC Probes Wall Street Firms Over Home-Loan Defaults

AP:

The Securities and Exchange Commission is examining major Wall Street banks to determine their vulnerability to home-loan defaults, two people familiar with the accounting inquiry said.

The people, who declined to be identified by name because the inquiry has not been publicly disclosed, described the examination as a routine part of the SEC's oversight authority and said it involved Goldman Sachs Group Inc., Merrill Lynch & Co. and several rival investment banks.

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