SEC looks into mortgage deals by Wall Street firms

The Securities and Exchange Commission is following its civil fraud charge against Goldman Sachs by looking into other mortgage deals made by Wall Street companies. The regulator is investigating whether investors were misled with a focus on collateralized debt obligations. The SEC's investigation could prompt a flood of lawsuits by financial institutions and investors who lost money during the subprime-mortgage meltdown.

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Wall Street Journal (tiered subscription model), The · Financial Times (tiered subscription model)

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