SEC said to seek subprime losses at Wall St. firms

Regulators are looking into whether major brokerages are hiding losses from the subprime mortgage crisis, according to the Wall Street Journal.


LONDON (CNNMoney.com) -- The Securities and Exchange Commission is looking into whether top Wall Street firms are hiding losses from the subprime mortgage crisis, according to a report published Friday.

The Wall Street Journal said regulators are checking the books of brokerage firms to determine whether they are marking down the value of the assets they hold as aggressively as they are the assets held by their customers.

The SEC is expected to check the books of the top five Wall Street firms as well as the securities divisions of major commercial banks, according to the Journal.

Goldman Sachs (Charts, Fortune 500) and Merrill Lynch (Charts, Fortune 500) are among the first companies whose books will be scrutinized, the newspaper said. Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.