In Wall Street Probe, Mortgage Due Diligence Firm Subpoenaed

Information from Clayton Holdings LLC, described as Wall Street’s largest due diligence firm, has been subpoenaed as part of the continuing federal probe into the part big banks played in the financial meltdown. Clayton did due diligence on residential mortgages that banks repackaged into toxic bonds that shook the financial markets in 2008. Bank of America and JPMorgan Chase are among the firms being investigated.