U.S. regulators probe 2 ex-Credit Suisse brokers: report

Federal prosecutors are investigating whether two former Credit Suisse brokers lied to investors about how they placed their money into short-term securities, the Wall Street Journal reported, citing people familiar with the matter. The investigation involves the $330 billion market for auction rate securities, including municipal bonds, corporate bonds, and preferred stocks whose rates are reset periodically, which broke down following auction failures caused by the credit crunch. The probe by the Justice Department's U.S. attorney's office for New York's Eastern District represents the first known criminal matter stemming from the crumbling auction-rate securities market, the paper said. Until now, the fallout in the auction-rate securities market has led only to civil litigation. Credit Suisse isn't a target of the Justice... [read full story]