The Real Deal Miami

Eric Schneiderman gets serious about mortgage investigation

May 17, 2011 03:45PM

New York Attorney General Eric Schneiderman is intensifying his investigation of the mortgage crisis that spurred the recession by requesting records from major Wall Street banks, according to the Associated Press.

Schneiderman has also arranged meetings with representatives of Bank of America, Morgan Stanley and Goldman Sachs Group to discuss the nature of mortgage securities operations during the boom. Schneiderman is concerned that packaging mortgages into securities to be purchased by investors may have helped disguise risky loans, according to a source close to the investigation.

Neither Schneiderman nor the banks were immediately available for comment. [AP via Crain’s]