Greece says to probe U.S. banks role in debt crisis-PM

ATHENS, May 16 (BestGrowthStock) – Greece may investigate U.S.
investment banks and their role in the run-up to the Greek debt
crisis which has shaken faith in euro zone economies, Prime
Minister George Papandreou said in comments broadcast on Sunday.

Wall Street and major banks around the world are attracting
scrutiny from regulators who are looking at transactions that
occurred in the run-up to the subprime mortgage meltdown and
financial crisis.

U.S. prosecutors are already conducting a broad criminal
investigation of six major Wall Street banks to determine if
they misled investors.

“We are right now having a parliamentary investigation in
Greece which will look into the past and see how things went the
wrong direction and what kinds of practices were negative
practices,” Papandreou told CNN.

“There are similar investigations going on in other
countries and in the United States … I hear the words fraud
and lack of transparency. So yes, there is great responsibility
here,” he said.
Asked whether there was a possibility of legal action
against the banks, he said: “I wouldn’t rule out that this may
be a recourse also.”

The European Union and International Monetary Fund agreed a
110-billion euro ($140-billion) bailout of Greece a week ago
after Greek bond spreads hit record highs which meant Athens
could not service its debts.

Three bank workers, including a pregnant woman, were killed
in Athens when rioters threw petrol bombs at a bank during a
protest last week against government austerity measures demanded
by the EU and IMF.
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(Reporting by Angeliki Koutantou; Editing by Jon Hemming)

Greece says to probe U.S. banks role in debt crisis-PM