Major Wall Street banks face a probe into mortgage securities deals
Eight Wall Street banks, including such big names as Morgan Stanley, Goldman Sachs and Credit Suisse, are facing allegations of misleading rating agencies about mortgage securities.
The banks have been summoned to submit documentation to New York's attorney general.
They could face criminal or civil charges if investigators decide there's enough evidence.
Wall Street giant Morgan Stanley is among those in the spotlight. Earlier reports had it that US federal prosecutors are investigating if the merchant bank misled investors to the tune of up to $400 million. In the light of the news, Morgan Stanley shares are falling in pre-market trading.
You can share this story on social media:
Follow RT on
Dear readers! Thank you for your vibrant engagement with our content and for sharing your points of view. Please note that we have switched to a new commenting system. To leave comments, you will need to register. We are working on some adjustments so if you have questions or suggestions feel free to send them to feedback@rttv.ru. Please check our commenting policy. Happy holidays to you all! Question More
