Bloomberg is reporting Credit-Default Swaps Probed by Justice Department:
The U.S. Justice Department is investigating the market for credit-default swaps, according to Markit Group Ltd., the data provider majority-owned by Wall Street’s largest banks.
“Markit has been informed of an investigation by the Department of Justice into the credit-derivatives and related markets,” spokeswoman Teresa Chick said yesterday in an e- mailed statement in response to questions from Bloomberg News. She declined to comment on the nature of the investigation. “We will work with the Department to provide any information requested of us.”
The antitrust division sent civil investigative notices this month to banks that own London-based Markit to determine if they have unfair access to price information, according to three people familiar with the matter
But this leads to another question, while we have been writing about this rigged game for some time, exactly how does the Justice Department do any serious investigation while AIG is used as a funnel of U.S. taxpayer money to other banks, wholeheartedly endorsed by the government?
The only other tidbit I could find was a possible probe on AIG misleading investors on their CDS exposure.