Bad Paper

The SEC has asked major Wall Street Firms to provide information on the sale of auction rate securities. The Financial Times reported that Goldman Sachs disclosed in a regulatory filing on Wednesday that it had “received requests for information from various governmental agencies and self-regulatory organizations relating to certain auction products … and the related recent failure of such auctions”. Goldman stated that it was cooperating with the investigation.

The article also stated that sources have mentioned Merrill Lynch, UBS, JPMorgan Chase and Bear Stearns as having received similar request for information.