Federal Reserve Chairman Ben Bernanke concluded his two-day semi-annual testimony on monetary policy before Congress on Thursday. He continues to remain cautious about the recovery and reiterated the central banks plans to keep short-term interest rates low for longer. He however said banks should "understand their risks" and prepare and protect themselves for whatever direction interest rates might take.
Subpoenas sent by the U.S. Justice Department over the sale of mortgage-backed securities could mean investigations of banks could drag on for years, according to a report from Reuters. The subpoenas were issued in January and demand information from banks regarding every MBS sold between 2006 and 2008; a much wider focus of investigation than previous attempts by the Securities and Exchange Commission, the article states. In January New York Attorney General Eric Schniderman took the lead of the "Residential Mortgage-Backed Securities Working Group," The group -- created by President Obama and run through the Justice Department -- will investigate "those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities," Schniderman said. --Written by Shanthi Bharatwaj in New York >To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.