Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Justice seeks info on Merrill scandal

The U.S. attorney's office wants SEC data related to its investigation of subprime fraud by Merrill Lynch - report.

Subscribe to Companies
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

The Justice Department wants information on the SEC's investigation of Merrill Lynch.

NEW YORK (CNNMoney.com) -- In a possible antecedent to a criminal investigation, the Justice Department has asked the Securities and Exchange Commission for information about its investigation of Merrill Lynch & Co., according to a Friday Wall Street Journal report.

The report says that it is unclear whether the SEC has yet agreed to turn over any information; however, the Commission often cooperates with the U.S. attorney's office on such matters.

Merrill Lynch (MER, Fortune 500) allegedly booked inflated prices of mortgage bonds it held, though the investment bank knew that their values had sunk. In the last few months, the brokerage has announced $22.4 billion write-downs of mortgage-backed securities, which led the SEC to begin its investigation.

The news of the possible joint-investigation comes after last week's report that the Massachusetts secretary of state accused Merrill of fraud and misrepresentation when it sold subprime-related debt to the city of Springfield. The secretary said that the brokerage failed to properly disclose to the city the risks of the investments. To top of page

Photo Galleries
Ralph Lauren's many looks A look at his brands and iconic creations More
8 biggest job killing companies of 2015 Whole Foods became the latest corporate giant to lay off workers. Here's a look at the companies that have announced the most jobs cuts this year. More
America's best beer towns Here are the best cities to crack open a cold one and celebrate Oktoberfest, according to Trulia. More