by Calculated Risk on 2/01/2008 09:58:00 PM

From the WSJ: The Subprime Cleanup Intensifies

Federal criminal prosecutors in New York are investigating whether UBS AG misled investors by booking inflated prices of mortgage bonds it held despite knowledge that the valuations had dropped ...

The SEC ... recently upgraded probes of UBS and Merrill Lynch & Co. into formal investigations ...

The details are sketchy, but this can't be fun.