A Senate panel has subpoenaed financial institutions, including Goldman Sachs and Deutsche Bank seeking evidence of fraud linked to the mortgage meltdown, reported the Wall Street Journal. The congressional investigation appears to focus on whether internal communications, such as email, show bankers had private doubts about whether mortgage-related securities they were putting together were as financially sound as they suggested. According to people familiar with the matter, the Senate Permanent Subcommittee on Investigations also has issued a subpoena to Washington Mutual, a Seattle thrift that was seized by regulators in last year’s financial crisis and is now largely owned by J.P. Morgan Chase. It appears likely that several other financial institutions also have received subpoenas.
Senate Probes Banks for Mortgage Fraud
Senate to determine existence of private doubts surrounding financial products
July 30, 2009