Equities

Reuters reveals U.S. Justice Dept. subpoenas Wall Street banks for small business loans info

Reuters reveals U.S. Justice Dept. subpoenas Wall Street banks for small business loans info

Reuters broke the news that the U.S. Justice Department has sent grand jury subpoenas to big banks seeking records as part of a broader investigation into potential abuse of a $660 billion emergency loan program to help small businesses hurt by the novel coronavirus. The previously unreported subpoenas issued by the department’s Washington fraud division do not necessarily indicate wrongdoing on the part of the banks, but will compound growing worries among lenders that they risk being swept up in a federal crackdown on Paycheck Protection Program fraud.