Ohio AG Zeroes In On Wall Street Firms For Legal Action For Subprime Debacle

Bloomberg News today reports:

• "Ohio Attorney General Marc Dann, likening the subprime lending industry to armed robbers, said he wants to sue securities firms because their bond sales enabled consumers to get mortgages they couldn't afford."

In an interview, Dann suggested that he might add investment banks and credit-rating firms to an existing lawsuit Ohio currently has against New Century Financial Corporation, or it may start new litigation, possibly using Ohio's civil version of the federal Racketeer Influenced and Corrupt Organizations Act. For more, see Ohio Attorney General Targets Wall Street for Lending.

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