Monday, October 20, 2008

U.S. Prosecutors, Cuomo Open Credit Default Swap Investigation

The U.S. government and New York Attorney General Andrew Cuomo have opened a joint investigation into the credit-default swap market ``for potentially improper activity,'' the top federal prosecutor in New York said.

U.S. Attorney Michael Garcia said in a statement today that his office will try to ``determine whether any federal laws have been violated'' and will complement a probe by Cuomo's office.

``By combining the resources, expertise, and legal authorities of the two offices, we are taking a comprehensive approach to this important issue,'' Garcia said.

Federal prosecutors in Manhattan are also investigating Lehman Brothers Holdings Inc., according to the firm's lawyer, Harvey Miller.

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