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The attorney generals just expanded their investigation of banks’ mortgage loan and securitization process to include 3 new banks: Deutsche Bank, JPMorgan, and UBS.State Attorney General Eric Schniederman announced earlier this month a wide-ranging probe into banks’ mortgage securitization process.
Most recently, Schneiderman issued subpoenas to four bond-insurance companies: Ambac Financial Group, Assured Guaranty Ltd., MBIA, and Syncora Holdings.
The bond companies were subpoenaed in order to gather more information about their dealings with banks. The six banks that have also been subpoenaed as part of the process, according to Bloomberg are: Goldman Sachs, Bank of America, and Morgan Stanley, and most recently, JPMorgan, Deutsche Bank, and UBS.
The bond companies claim that banks deceived them into guaranteeing worthless loans. Some of the bond companies, like MBIA, for example, have filed lawsuits against the banks demanding that they re-purchase the loans. (One lawsuit unveiled a $1 million loan to a stripper.)
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