Reuters reports that Massachusetts Secretary of State William Galvins has sent a letter to Wall Street’s biggest banks for data concerning their exposure to municipal credit default swaps (CDS) linked to bonds issued by the state’s cities and towns. In the letter Mr. Galvins specifically asks what the municipal issuers and investors were told about the banks’ CDS investments.
The probed banks are Bank of America’s Merrill Lynch unit (BAC), Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS), Deutsche Bank (DB), Wells Fargo (WFC), UBS AG (UBS), JPMorgan (JPM) and Barclays (BCS).
All the banks have until Friday, May 28, to tell Massachusetts investigators about the bond offerings they underwrote and any municipal CDS they may have structured.
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