Settlement agreements being hammered out by securities regulators and securities firms accused of fraud in mortgage bond deals are likely to include civil charges against at least one person connected to each deal, the Wall Street Journal said, citing people familiar with the matter.
SEC officials are pushing hard as part of their ongoing probe of collateralized debt obligations and other mortgage related products developed by Wall Street to bring charges against individuals, such as executives involved in selling the deals or outsiders who managed the assets, the Journal said.
The agency may also file civil charges against hedge fund managers who helped structure certain mortgage bond deals but then bet against them, the paper said.
The SEC could not immediately be reached for comment outside regular U.S. business hours.
(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)