SEC, Banks Talk CDO Settlement: Report
NEW YORK (
) -- The
Securities and Exchange Commission
is in preliminary talks with several major banks to resolve an investigation of their sales of mortgage-bond deals that played a large role in the financial crisis, the
Wall Street Journal
reports, citing people familiar with the matter.
The probe involves collateralized debt obligations, or CDOs, that were sold to different investors, the
Journal
reports.
The SEC, after issuing subpoenas for documents and interviewing officials from nearly every bank that was a major player in the sales of the CDOs, has begun negotiating with the companies, these people said, the newspaper reports.
The talks are at early, informal stage and could fall apart, people with knowledge of the talks said.
Firms that received SEC subpoenas include
Citigroup
(C) - Get Report
,
Deutsche Bank
(DB) - Get Report
,
JPMorgan Chase
(JPM) - Get Report
,
Morgan Stanley
(MS) - Get Report
and
UBS
(UBS) - Get Report
. None of the banks has been charged as a result of the investigation.
A spokesman for the SEC wouldn't comment for the newspaper, nor would any of the banks.
-- Written by Joseph Woelfel
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Joseph Woelfel
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