Blumenthal said he had sent out an estimated 30 subpoenas to investment banks, ratings agencies and diligence companies. He said the boilerplate disclaimers banks used may have been ``overbroad or useless to many investors'' about the real risks posed by bundled, mortgage-backed loans that involved the high risk loans known as exceptions. He also said underwriting guidelines may have been compromised.
NY, Connecticut Probe Wall Street Loan Disclosures (Update2)
Bloomberg - Jan 12, 2008
The Challenges We Face
Yahoo! News - Jan 11, 2008
Watch for House Judiciary Committee Hearings and investigations into Wall Street and subprime scams. And on January 22, Rainbow/PUSH and the Urban League will lead a march on the Department of Housing and Urban Development in Washington to bring ...