New Probe: Did Banks Dupe Credit Raters?

New York AG Andrew Cuomo investigates 8 big banks
By Emily Rauhala,  Newser User
Posted May 13, 2010 5:59 AM CDT
Updated May 13, 2010 7:32 AM CDT
Andrew Cuomo is looking into the relationship between banks and rating agencies.   (AP Photo/Mary Altaffer)

(Newser) – More bad news for bankers: New York's attorney general, Andrew Cuomo, is investigating whether banks deliberately misled rating agencies ahead of the housing market collapse. So far, authorities have focused on dealings between banks and clients who purchased mortgage-backed securities, notes the New York Times. Cuomo's crusade broadens the scope by considering the relationship between banks and rating agencies,

The firms under investigation are Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Credit Agricole, and Merrill Lynch (now owned by Bank of America), says Reuters. The agencies in question are Standard & Poor's, Fitch Ratings, and Moody's Investors Service.

My Take on This Story
Show results without voting  |