SEC checking for hidden subprime losses at Wall Street firms

The Securities and Exchange Commission is looking at the finances of leading Wall Street firms to see if they are hiding losses from the collapse of the subprime-mortgage market. The normally routine checks come at a sensitive time, as none of the firms had reported big subprime losses as of their last earnings reports. "No one really knows how to price asset-backed securities and CDOs and that's a real problem in the market now," said Ann Rutledge, principal of R&R Consulting.

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