Source:
Reuters NEW YORK (Reuters) - A few months into his investigation into the subprime mortgage industry, Ohio Attorney General Marc Dann sees early signs Wall Street underwriters were not just participants in a mortgage boom- turned-bust, but potentially its key leaders.
Prompted by a rash of homeowner defaults and foreclosures rocking Ohio communities, Dann this summer launched an investigation that questions whether mortgage lenders, investment banks and rating agencies created a system that sold homes and loans to families who could not afford them.
"I've gone from saying, 'They must have known,' to it's possible the investment banks were directive of the mortgage companies who were directive of mortgage brokers," Dann told Reuters on Friday.
. . .
In June Dann told Reuters he had sued 10 mortgage brokers, lenders and appraisers as part of predatory lending schemes. A month later he turned his sights on credit rating agencies, who gave the highest credit grades to securities that have since proved to be riddled with risky assets.
Dann, who declined to comment on the recipients of his demand letters, said Ohio has been collaborating with prosectors from other states as fallout from mortgage market meltdown become a national issue.
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http://www.reuters.com/article/bankingFinancial/idUSN0732967320071207
Ohio is becoming impressive now that it doesn't have that choke hold the corrupt GOPers had on it.
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