Banks Probed For Misleading Rating Agencies

Federal and now state officials are looking for fraud throughout Wall Street. The Associated Press reports that New York's attorney general is investigating eight banks to see whether they misled credit ratings agencies, in order to secure higher rating for investments they were selling. Meanwhile, The Wall Street Journal reports federal prosecutors are working with securities regulators to investigate several Wall Street banks to determine whether they misled investors in the marketing of mortgage securities.

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RENEE MONTAGNE, host:

NPR's business news starts with Wall Street under the microscope.

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MONTAGNE: Federal, and now state, officials are looking for fraud throughout Wall Street. Today, the Associated Press reports that New York's attorney general is investigating eight banks to see whether they misled credit ratings agencies in order to secure higher rating for investments they were selling.

Also today, the Wall Street Journal reports that federal prosecutors are working with securities regulators to investigate several banks on Wall Street, not just Goldman Sachs. They're trying to determine whether the banks misled investors in the marketing of mortgage securities.

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