An article, in the May 17, 2011 NY Times,reports he New York attorney general has requested information and documents in from at least three major Wall Street banks and their mortgage securities operations during the credit boom. These inquiries show renewed interest, by the AG’s office, in the practices of these units and what role they may have played in creating billions of dollars in mortgage losses. The banks in question are Bank of America, Goldman Sachs and Morgan Stanley.
According to the article, officials at Bank of America and Goldman Sachs declined to comment about the investigation; Morgan Stanley did not respond to a request for comment. However, the article states the inquiry requests information covering many aspects of the banks’ loan pooling operations which bundled thousands of home loans into securities that were then sold to investors such as pension funds, mutual funds and insurance companies.
The attorneys at Colling Gilbert Wright & Carter have and are currently representing dozens of clients who purchased income, bond and high yield funds without the knowledge the funds contained esoteric and risky mortgage backed securities. Examples include the Morgan Keegan Bond funds and the Oppenheimer Champion Income Fund. If you have lost money in a bond or income fund, please contact our office for a case evaluation.