According to a Reuters article this morning, the SEC is now looking at the books of forms and investment banks to determine whether the firms are properly calculating the value of subprime mortgage assets on their books.
Amid the controversy over subprime mortgages, and investor losses coming from these investments, analysts and investors are questioning the valuations, and whether firms are attempting to hide or minimize the losses from these obligations.
According to the article the firms who are expected to be examined are Goldman and Merrill, although Reuters did not dislose why it believes those two firms in particular are being scrutinized.
