Banks Subpoenaed For New Century Reports

Law360, New York (March 14, 2007, 12:00 AM EDT) -- In an investigation of stock analysts’ rosy reviews of the collapsing subprime lending industry, a Massachusetts regulator issued subpoenas to investment banks Bear Stearns and UBS Securities.

William Galvin, the state’s Secretary of the Commonwealth, said Tuesday that the securities division of his office had subpoenaed documents from the banks in connection with analysts’ recommendations to get behind the mortgage brokers, including New Century Financial, just weeks before the risky businesses went bust.

Galvin said recent reports of analysts issuing favorable reviews of the troubled lenders...
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