Sunday, May 16, 2010

Massachusetts investigation targets banks

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among 10 banks Massachusetts is targeting in a probe of trading of municipal credit default swaps, according to the office of Secretary of State William Galvin.
The state's securities division sent letters last week to 10 underwriters of municipal bonds, asking them to detail their trading of credit default swaps linked to state and local government bonds they've underwritten in Massachusetts since 2003.

The other banks are: Morgan Stanley, Citigroup Inc., Deutsche Bank AG, Wells Fargo & Co., Barclays PLC, UBS AG, and both Merrill Lynch and its parent, Bank of America Corp., according to Michael Maresco, assistant secretary of state.

Bank of America will "work with Massachusetts officials to provide the information they need," said Bill Halldin, a spokesman for the Charlotte, N.C.-based company.

Understanding Credit Scores and ReportsRegulators close seven banks