AP Source: New York attorney general investigating whether 8 banks misled ratings agencies
By Stephen Bernard, APThursday, May 13, 2010
AP Source: NY AG probing 8 banks over securities
NEW YORK — A person familiar with the matter says the New York attorney general is investigating eight banks to determine whether they misled ratings agencies about mortgage securities.
Attorney General Andrew Cuomo is trying to figure out if banks provided the agencies with false information in order to get better ratings on the risky securities, said the person, who spoke on condition of anonymity because the investigation has not been made public.
Cuomo’s office is investigating Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Credit Agricole and Merrill Lynch.
Mortgage securities often received high ratings during the housing boom, but investors lost billions of dollars on them during the credit crisis.
