Major Wall Street firms face criminal probe: source

WASHINGTON Thu May 13, 2010 6:44pm EDT

A view of the Morgan Stanley headquarters building in New York's Times Square, February 3, 2010. REUTERS/Brendan McDermid

A view of the Morgan Stanley headquarters building in New York's Times Square, February 3, 2010.

Credit: Reuters/Brendan McDermid

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WASHINGTON (Reuters) - Federal prosecutors in New York are conducting a broad criminal investigation into whether major Wall Street financial firms misled investors, a person familiar with the matter said on Thursday.

The person said the preliminary criminal probe is being conducted with U.S. securities regulators and involves JPMorgan Chase, Citigroup, Deutsche Bank, UBS, Morgan Stanley and Goldman Sachs Group Inc.

The person said the investigation included mortgage-bond deals, that it was in an early stage and that it might not necessarily lead to criminal charges against all of the firms. The person spoke anonymously because the probe is ongoing.

(Reporting by James Vicini, Editing by Lisa Von Ahn)

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Comments (17)
STORYBURNcom2 wrote:
The SEC is getting desperate to find a case it can actually prove to be illegal

May 13, 2010 7:42am EDT  --  Report as abuse
healnghanz wrote:
If JP Morgan Chase owns 30% of BP stock, what didnt they know about BPs behavior regarding moving too quickly on the oil well that blew out?

May 13, 2010 9:24am EDT  --  Report as abuse
Gulden_NL wrote:
When will we see Chris Dodd and Barney Frank hauled in front of a hostile oversight board for their fraudulent bilking of American taxpayers through Freddy Mac and Fannie Mae’s CONgressional shell game? And will we see them hung from a noose on the steps of the Capitol?

May 13, 2010 1:45pm EDT  --  Report as abuse
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