Federal investigators are probing whether a number of Wall Street banks cheated clients in the years following the financial crisis by deliberately mis pricing a type of mortgage bond that was central to the economic turmoil.
The usual suspects under scrutiny: Barclays, Citigroup, Deutsche Bank, Goldman Sachs Group Inc., J.P. Morgan Chase , Morgan Stanley, Royal Bank of Scotland Group and UBS AG. They held billions of dollars worth of such securities.
The value of many of those securities plunged after the crisis.
Sigtarp, a watchdog set up in 2008 to root out fraud related to the crisis bailout, is involved because the banks under scrutiny sold residential mortgage-backed securities to entities partly funded by $475 billion of bailout money.