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Clayton Granted Immunity in New York AG Probe.

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| March 01, 2008 | COPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Washington -- New York attorney general Andrew Cuomo has granted Clayton Holdings immunity from prosecution in exchange for providing information on the due diligence work it conducted for Wall Street firms that securitized subprime mortgages over the past five years.

The immunity agreement gives AG Andrew Cuomo and his investigators a unique view of the underwriting standards and selection process issuers of mortgage-backed securities employed during the subprime boom.

Sources say one key issue AG Cuomo is looking at is underwriting "exceptions" granted by project managers working for Clayton on Wall Street accounts.

In a statement, Clayton chairman and chief executive Frank Filipps said his company has cooperated with the state AG's office since it was first subpoenaed in June. As reported by MSN, The Bohan Group, another underwriting firm that worked for Wall Street, also has been subpoenaed.

"Now, at the request of the New York attorney general, we have entered into a cooperative agreement with his office," said Mr. ...

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Source: HighBeam Research, Clayton Granted Immunity in New York AG Probe.

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