SEC probes banks and companies in loan securities dealings: WSJ
(Reuters) - The U.S. Securities and Exchange Commission has launched an investigation into the increasing number of complex bond deals on Wall Street that may create new opportunities for fraud, the Wall Street Journal reported on Monday.
Investigators with the SEC are examining if banks and companies are using the bond deals to hide risks illegally, the newspaper reported, citing sources close to the matter.
The securities are packages of corporate loans and debts that are assembled and sold by Wall Street Banks to investors. They have gained in popularity after the financial crisis as investors chase riskier investment products. (WSJ story: link.reuters.com/vuj87v)
The SEC is also investigating whether a number of banks including Barclays , Citigroup , Deutsche Bank AG, Goldman Sachs Group, Morgan Stanley, Royal Bank of Scotland and UBS AG have been cheating their clients by mispricing certain bond deals.
The SEC was not immediately available for comment outside of normal business hours.
(Reporting by Narottam Medhora in Bangalore; Editing by Lisa Shumaker)
- China food scandal spreads, drags in Starbucks, Burger King and McNuggets in Japan |
- Israel pounds Gaza despite international peace efforts |
- Train carrying MH17 bodies on final journey reaches Ukraine city |
- Islamic State crushes and coerces on march towards Baghdad
- Jokowi party claims victory in Indonesian presidential election