Just ask Ben Bernanke and Ken Lewis – it is always the emails that get you. And over this weekend, dozens of bankers are likely thinking back on messages they sent their buddies in the months (years, really) leading up to the financial meltdown.
Details are scant, but “according to people familiar with the matter” – according to The Wall Street Journal – a Senate panel has subpoenaed financial institutions including Goldman and Deutsche Bank looking for evidence of fraud in the “mortgage-market meltdown.” In other words, they are looking for internal documents that show bankers were publicly confident about securities they privately said were unstable.
Goldman, Deutsche Bank and J.P. Morgan have so far not commented on whether or not they received subpoenas.
“A subpoena from the subcommittee raises a number of factual questions asking for various company correspondence, according to a person who reviewed it,” the WSJ said.
It is safe to assume the subpoenas ask for all paper and electronic correspondence relating to the various financial instruments that contributed to the collapse – and that will mean every email every employee wrote relating to mortgage-backed securities. Chances of there not being a few juicy emails, among what will be thousands, is fairly small.
Of course, whether there is a “these things are toxic” smoking gun remains to be seen. No matter what, attorneys for the subpoenaed banks just got painfully busy.
Read the entire article here.
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