N.Y. Probes Banks' Role in Mortgage Crisis

NEW YORK (TheStreet) -- New York's attorney general reportedly has opened an investigation into the mortgage securities operations of Bank of America(BAC), Morgan Stanley (MS) and Goldman Sachs (GS) during the credit boom.

The New York Times, citing people briefed on the matter, reported Eric Schneiderman has requested information and documents in recent weeks from the three major Wall Street banks. The attorney general also requested meetings with representatives from the banks.

The meetings are expected to happen in the coming week, according to The Wall Street Journal.

The inquiry by New York's attorney general appears to be broad, with Schneiderman requesting information covering many aspects of the banks' loan pooling operations, the Times reported. The banks packaged thousands of home loans into securities that were then sold to investors such as pension funds, mutual funds and insurance companies.

The investigation is in the early stages, Schneiderman's spokesman said, and the attorney general wouldn't be commenting.

Schneiderman's requests seem to confirm that the New York attorney general is operating independently of peers from other states who are negotiating a broad settlement with large banks over foreclosure practices, the Times reported.

Officials at Bank of America and Goldman Sachs declined to comment for the Times about the investigation, while Morgan Stanley didn't respond to a request for comment.

-- Written by Joseph Woelfel

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