Subpoenas Issued To Banks To Check For Misleading Rating Agencies, (GS, MS, C, UBS)

Investigators and prosecutors have started focusing their attention on complicated repackaged debt known as collateralized debt obligations. Prosecutors and regulators appear to be on a new track now looking to see if the big banks that designed and sold all those toxic mortgage-linked securities either duped their investors or the powerful rating agencies that gave a Triple A stamp of approval on the deals. New York Attorney General, Andrew Cuomo, issued written notice to eight banks, including Goldman Sachs Group Inc GS, Morgan Stanley MS, Citigroup Inc C and UBS UBS, launching a probe into whether they misled rating agencies.