Citing people familiar with the situation, The Journal called the Justice Department's interest "preliminary" but said sources told the newspaper that the U.S. attorney's office request could be a precursor to a criminal investigation
The Justice Department's move comes after the SEC upgraded its own investigation into a formal probe, the paper reported. Moreover, the FBI is looking into dealings at 14 different firms and the way they did mortgage business.
Last week, authorities in Massachusetts charged Merrill and two of its employees with fraud in connection with securities it sold to the city of Springfield, Mass., which collapsed in value shortly after they were sold.
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