Documents subpoenaed in subprime probe

Massachusetts Secretary of State William F. Galvin said today his staff has subpoenaed documents from UBS Securities and Bear Stearns & Co. regarding their research analysis of subprime lenders, including New Century Financial Corp. of California.

In a press release, Galvin noted that a 2003 settlement between research analysts and regulators over reports on technology companies that proved far too optimistic.

But, Galvin said, "Recent revelations that research analysts issued positive reports on mortgage lenders to those with less than solid credit ratings even as those companies faced more and more defaults suggests that the commitment of 2003 has not been met,'' he said.
(By Ross Kerber, Globe staff)

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