NY attorney general investigating banks - WKOW 27: Madison, WI Breaking News, Weather and Sports

NY attorney general investigating banks; believe ratings agencies misled

NEW YORK (WKOW) -- New York attorney general is investigating eight banks to determine whether they misled ratings agencies about mortgage securities.

Attorney General Andrew Cuomo is trying to figure out if banks provided the agencies with false information in order to get better ratings on the risky securities, said a person close to the matter, who spoke on condition of anonymity because the investigation has not been made public.

Cuomo's office is investigating Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Credit Agricole and Merrill Lynch.

Mortgage securities often received high ratings during the housing boom, but investors lost billions of dollars on them during the credit crisis.

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