New York AG Investigates Mortgage Underwriting Practices

The New York State Attorney General's Office sent subpoenas to several Wall St. firms, including Merrill Lynch, Bear Stearns and Deutsche Bank, seeking information relating to the packaging and selling of debt tied to high-risk mortgages.  The investigation is looking into the firms' underwriting standards, including the adequacy of their review of the quality of the mortgages, and their relationships with credit rating agencies.  WSJ, Wall Street Firms Are Subpoenaed.