NY attorney general turns to bond insurers for info on banks
[Update 1: Adds Assured Guaranty comment] Bond insurer MBIA Inc. (MBI) confirmed Tuesday that the New York attorney general subpoenaed information relating to some of the residential mortgage-backed securities complaints filed by MBIA. MBIA is not under investigation in the probe, sources familiar with the matter say. The AG is seeking information related to the mortgage origination and securitization activities of some banks. The Wall Street Journal reported on Monday a total of four bond insurers were subpoenaed for information related to the probe: Ambac Financial Group, MBIA, Syncora Holdings and Assured Guaranty (AGO). Ambac declined to comment on the investigation, and representatives for Syncora weren't immediately available. Assured released a statement saying, “We support the attorney general with their investigation which will hopefully accelerate the resolution of mortgage origination, securitization and servicing problems. At this time, we prefer not to confirm whether or not we have received a subpoena.” Bloomberg also reported that New York Attorney General Eric Schneiderman is expanding his probe of mortgage securitizations to JPMorgan Chase & Co. (JPM), UBS AG (UBS) and Deutsche Bank AG (DB). Schneiderman wants additional information regarding claims the bond insurers paid to investors, as well as details about the settlements the companies signed with the banks that bundled home loans into MBS, according to the Journal. Also Monday, California Attorney General Kamala Harris announced a 25-person task force to look into mortgage fraud in the Golden State. Write to: Kerri Panchuk.