Government Probe Into Wall Street Sales Widening

FOX business is reporting breaking news that the government has ramped up its investigation of Wall Street’s sale of toxic securities during the financial crisis to include firms other than Goldman Sachs GS and Morgan Stanley MS. Sources tell FOX Business that the Securities and Exchange Commission's most active investigations so far also include Deutsche Bank DB and Citigroup C, two of the biggest packagers of the toxic debt, known as collateralized debt obligations, that are at the center of the government’s interest. Sources tell FOX Business that after the SEC initially requested information from all the firms when it began its probe last year, it came back and subpoenaed Citigroup and Deutsche Bank for additional documents, underscoring a heightened level of interest. In the case of Citigroup, the SEC has conducted depositions of senior executives there, these people tell FOX Business. As of today, there have been no so-called Wells Notices issued to either firm. A Wells Notice indicates that the commission’s enforcement staff is recommending to the full commission that the firms should be charged with civil securities fraud. That said, people with knowledge of the matter say the probes are ongoing. See Benzinga's Entire Feed Here See the rest of FOX Business's story here.