Politicians are not as eager to investigate their own interventions into the free market, destroying what had been the most reliable investment around — mortgages.
The New York Post reports: Several high-profile investigations, including one by New York State Attorney General Eric Schneiderman and another by the Justice Department, could hit banks with massive penalties for their role in the mortgage meltdown.
Sources told The Post that Schneiderman will launch an investigation in the next few weeks into Bank of America, Goldman Sachs and Morgan Stanley, along with other financial players down the road.
One source described his probe as a starting point for what could become a broader investigation into the mortgage practices of leading Street firms during the housing boom. The initial probe will focus on how firms packaged and sold mortgage securities to investors, the source said.