A Senate panel headed by Senator Carl Levin of Michigan has subpoenaed several financial institutions, including Goldman Sachs and Deutsche Bank, for records of correspondence related to mortgage-backed securities. Apparently they’re hunting for e-mails such as the ones found last year on the computers of indicted Bear Stearns managers Ralph Cioffi and Matthew Tannin (“The entire subprime market is toast”; “Believe it or not, I’ve been able to convince people to add more money”) that might indicate people inside knew that the securities were toxic, but were keeping it to themselves. [WSJ]
