SEC Wants To Ask Big Banks About Mortgage Investments

The Securities and Exchange Commission isn’t done sorting through the mortgage mess, and has launched inquiries with Wells Fargo and Goldman Sachs over mortgage-backed securities they peddled to investors.

The two banks both revealed that the SEC inquiries were underway, and The New York Times says other banks, including JP Morgan Chase, are expected to make similar announcements. The SEC is looking to find out whether or not banks were upfront about the riskiness of some home loans that were included in securities sold to investors.

It will take constant effort from regulatory agencies to change the culture that led to the mortgage crisis. Hopefully these inquiries root out ethically questionable practices that helped sink the economy.

Goldman and Wells Fargo Face S.E.C. Inquiries [The New York Times]

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  1. Cat says:

    Four years since the crisis started, and Exchange Commission isn’t done sorting through the mortgage mess? Or, rather, they’ve barely started?

    • Billl says:

      This annoys me to no end too. The message to the company is that even if the fine were to take back ALL of the profits from 1999 to 2008, by the time the investigation is done the they got to use all that money for an extra 5-10-15 years (which in finance terms- the time value of money- means that they lose very little in the grand scheme of things).

      And the fine won’t be anywhere near the total profits they earned……

  2. dolemite says:

    Meh, what does it matter? Just pre-pay 50 million in fines on your 50 billion in profits and “investigation is closed…no one at fault, no crimes committed, no jail time for anyone.”

  3. econobiker says:

    “SEC Wants To Ask Big Banks About Mortgage Investments”

    “The SEC is looking to find out whether or not banks were upfront about the riskiness of some home loans that were included in securities sold to investors.”

    What rock got moved for them to crawl out from under?

    Open barn door? Horses?

    Why now?

    Is everyone who allowed this to happen now securely employed as lobbyists or in the financial industry?

  4. lovemypets00 - You'll need to forgive me, my social filter has cracked. says:

    Expect to see a bunch of executives in $5000 suits saying “I decline to answer on the grounds that I may incriminate myself, so I’m envoking my 5th Amendment rights”.

    • Applekid ‚îÄ‚îÄ‚î¨ Ôªø„Éé( „Çú-„Çú„Éé) says:

      Thankfully, we don’t need their testimony. The evidence is overwhelming.

  5. Buckus says:

    So all ten people working at the SEC just now decided this was worth asking about?

  6. Mr. Fix-It says: "Canadian Bacon is best bacon!" says:

    Huh. The bribery fund must’ve dried up.

  7. smartmuffin says:

    I’m sure they’ll get right on this….

    Right as soon as they finish interviewing new applicants who just came from the big banks, applying for future positions at the big banks, and watching porn on their government computers.