Why We Need Federalism-4

"New York State prosecutors have sent subpoenas to several Wall Street firms seeking information related to the packaging and selling of debt related to high-risk mortgages, people familiar with the matter say, the latest legal woe to hit the stressed industry. The subpoenas, sent by the office of [NY] state's attorney general, Andrew Cuomo, are broadly written and request information from firms including Merrill Lynch, & Co., Bear Sterns Cos., and Deutsche Bank AG, people familiar with the matter say. ... The [SEC] has opened about two-dozen investigations stemming from the collapse of residential subprime mortgages, a person with knowledge of the situation said. In addition, the role of credit-rating firms is being examined by the federal and state regulators", WSJ, 5 December.

Best of luck to Andrew Cuomo. I hope the feds stay out of his way. See also my 30 November post mentioning Robert Morgenthau.