Due-diligence company Clayton Holdings says the Department of Justice is looking into 16 financial institutions in relation to residential mortgage-backed securities. Clayton is objecting to a July 1 government subpoena, calling it a "fishing expedition." "Rather than seek documents for those clients who are actually the subjects of its investigation, the government is seeking to seize every document and communication for all 193 clients and for almost 5,000 e-mail custodians, in violation of Clayton's rights under the Fourth Amendment," the firm said in its court filing.

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