SEC's Cox: Subprime Probes Underway

Testifying at the Senate Banking committee hearing, SEC Chairman Chris Cox said his agency has more than 50 investigations open on subprime mortgage cases, trying to ascertain if anything illegal went on in the risky-mortgage market that contributed to the current crisis.

In his testimony, Cox called for the regulation of the credit-default swap market, which has taken much of the blame for the state of things.

A credit-default swap, or CDS, is an unusual financial instrument in which the risk of default on credit is passed around like a hot potato.

"This market is regulated by absolutely no one," Cox said. "It is a market ripe for fraud and manipulation."

Cox said he is using the SEC's anti-fraud authority to investigate the CDS market.

-- Frank Ahrens

September 23, 2008; 11:27 AM ET  | Category:  business
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Comments

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I am a victim of the predatory lending practices that have led to this housing meltdown. I was duped into acquiring a mortgage that was misrepresented to me.

When I saw the huge stock transactions Countrywide was making (they hold the mortgage) I wrote to the SEC looking for some answers.

I have not heard a word back.

Posted by: Widow in Michigan | September 23, 2008 11:51 AM

There is a question that is really lingering in the back of my mind. Let's say the taxpayers will have to bailout these big businesses that made numerous mistakes because of plain old "GREED". Will there be a stipulation that these highly paid executives will no longer continue to get the Million-Plus salaries, they have been enjoying. The middle class no longer should support the rich in this country. Greed has brought us to this point and greed will keep us here if somebody is not willing to take less.

Posted by: Lavern Hicks | September 23, 2008 1:02 PM

To all potential home buyers:

Hold off buying for at least 1 more year.

Prices will be dropping significantly.

Posted by: Michael | September 23, 2008 1:05 PM

A-little to late, don't you think Chris Cox sucker?

Posted by: Anonymous | September 23, 2008 5:20 PM

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