Sub-prime mess: More turmoil for Wall Street firms as NY AG Cuomo serves up subpoenas

NY Attorney General Andrew Cuomo is starting a probe of Wall Street firms and their roles in the sub-prime mess:

New York state prosecutors have sent subpoenas to several Wall Street firms seeking information related to the packaging and selling of debt tied to high-risk mortgages, people familiar with the matter say, the latest legal woe to hit the stressed industry.

The subpoenas, sent by the office of New York state's attorney general, Andrew Cuomo, are broadly written and request information from firms including Merrill Lynch & Co., Bear Stearns Cos. and Deutsche Bank AG, people familiar with the matter say.

The review, part of a broader investigation into the mortgage industry, is examining how adequately the investment banks reviewed the quality of mortgages before packaging them into products that were then sold to investors, these people say. The subpoenas also requested information about how the debt was pooled into securities, including the banks' relationship with credit-rating firms.

Wall Street Firms Are Subpoenaed - Wall Street Journal