Connecticut AG recruits private firms to help MBS probe
Connecticut Attorney General George Jepsen is recruiting private consulting firms to assist his investigation into mortgage-backed securities fraud.
Jepsen joined New York AG Eric Schneiderman and the Justice Department last week in a wider investigation into secondary market issues. Combined with Delaware AG Beau Biden and Jepsen, the task force has jurisdiction over the trusts necessary to look into every MBS issued over the past decade, Schneiderman said.
The task force subpoenaed 11 banks as part of the probe last week.
On Monday, Jepsen issued a request for proposals to independent consultant firms. They must send ideas to his office by March 5 covering how they would help review and analyze complex instruments, statements and documentation.
An evaluation committee will evaluate the proposals based on the experience, qualifications and a record of compliance with ethical rules.
Federal regulators forced banks to recruit independent consultants for the wide-scale review into foreclosure abuses, which will take place this year. The agencies said the consultants were closely vetted for any conflicts of interest.
According to Jepsen's RFP, any information, data or materials discovered by the recruited consultants will be placed under strict confidentiality agreements but will be subject to Freedom of Information Act terms.