Subpoenas Issued to Financial Firms in Expanded Probe [View all]

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Subpoenas issued to financial firms in expanded probe

By Aruna Viswanatha and James Vicini
WASHINGTON | Fri Jan 27, 2012 5:49pm EST

WASHINGTON (Reuters) - The Justice Department issued civil subpoenas to 11 financial institutions as part of a new effort to investigate misconduct in the packaging and sale of home loans to investors, Attorney General Eric Holder said on Friday.

Holder declined to provide specifics, including the names of the firms.

"We are wasting no time in aggressively pursuing any and all leads," Holder said at a news conference announcing details of a new working group to investigate misconduct in the residential mortgage-backed securities (RMBS) market, "you can expect more to follow."

President Barack Obama said he directed Holder to create the new unit in his State of the Union speech late Tuesday, saying it was needed to "help turn the page on an era of recklessness."