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Citigroup, Credit Suisse Said to Face U.S. MBS Probes

Credit Suisse Group AG and Citigroup Inc. are among banks grappling with a round of U.S. probes into mortgage-bond sales, as the government uses a 1989 law to extend scrutiny of Wall Street’s role in the credit crisis and seek additional penalties from the industry.

The Justice Department is examining whether both companies violated the Financial Reform, Recovery and Enforcement Act, which targets misconduct affecting federally insured financial firms, according to people briefed on the situation. JPMorgan Chase & Co. and Bank of America Corp. also are facing FIRREA inquiries, people familiar with those cases have said.