iOS app Android app More

NY AG Investigating Big Banks Over Packaging Of Mortgage Loans

Ny Ag

First Posted: 05/17/11 09:17 AM ET Updated: 07/17/11 06:12 AM ET

New York Attorney General Eric Schneiderman is investigating big banks like Bank of America Corp, Morgan Stanley and Goldman Sachs related to packaging of toxic mortgage loans into securities, the Wall Street Journal reported, citing sources.

The Attorney General will hold meetings with bank executives and has requested related documents from the firms, the Journal said.

Huffington Post on Monday reported the inspector general of the Department of Housing and Urban Development has concluded that Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial defrauded the government in seeking reimbursements for mortgages on properties they improperly foreclosed upon.

Bank of America and Wells Fargo declined to comment on Monday, while representatives for the other servicers were not immediately available for comment.

The U.S. Securities and Exchange Commission is also in talks with major Wall Street banks to settle allegations of fraud relating to sale of toxic mortgage bonds that helped unleash the financial crisis.

Bank of America, Morgan Stanley and Goldman Sachs could not immediately be reached by Reuters for comment on the Journal report outside regular U.S. business hours.

(Reporting by Rachel Chitra in Bangalore; Editing by Vinu Pilakkott)

Copyright 2010 Thomson Reuters. Click for Restrictions.


FOLLOW HUFFPOST BUSINESS
Subscribe to the HuffPost Money newsletter!
Filed by Ryan McCarthy  |