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]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.