NY attorney general to meet US banks in probe

17 May 2011

The New York attorney general is to meet up with the banks involved in a probe into allegations of mortgage securitization.

Bloomberg reports that a person familiar with the matter has revealed Goldman Sachs Group, Bank of America and Morgan Stanley will correspond with Eric Schneiderman as part of the investigation.

According to the insider, Mr Schneiderman requested the meetings take place while he examines mortgage practices, as well as the packaging and selling of loans to investors.

All 50 state attorneys, along with federal regulators, are to look at how home loans are handled by the largest banks in the US.

Mr Schneiderman noted that any joint effort between the investigators should not prevent states carrying out their own work to get to the bottom of the matter.

Bloomberg recently reported that a number of banks in the US - including Bank of America and JP Morgan Chase - have offered billions of dollars in an effort to settle a probe relating to their foreclosure operations by state and federal officials.

By Claire Archer

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