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2nd NY conspiracy plea in federal probe of the sub-prime mortgage securities market
NEW YORK (AP) ' Two former Credit Suisse traders have pleaded guilty to conspiracy in a New York probe of the federal sub-prime mortgage securities market.
Salmaan Siddiqui pleaded guilty Wednesday in Manhattan and signed a cooperation agreement.
Earlier in the day, a former London-based Credit Suisse managing director, David Higgs, also signed a cooperation agreement while pleading guilty.
The charge carries a potential maximum sentence of five years in prison.
The probe centers on exaggerations brokers made about the value of subprime mortgage securities as the housing market was collapsing. Authorities say brokers enticed investors to pour money into the securities market for subprime mortgages by making the market sound healthy.
The investigation focuses on activities in 2007 and 2008.