SEC To Investigate Other Soured Mortgage Deals

The SEC, after having hit Goldman Sachs Group Inc with a civil fraud charge, is investigating other mortgage deals arranged by some of Wall Street’s biggest firms.

Among the firms that created mortgage deals that soon went sour were Deutsche Bank AG, UBS AG and Merrill Lynch & Co, now owned by Bank of America Corp.

At the beginning of the housing market crash, some financial firms may have designed products to allow key clients to bet on a sharp housing downturn.

Soured mortgage investments helped trigger the near-collapse of American International Group Inc, which had insured at least $1 billion of bond deals issued by Wall Street firms in 2005.

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