It looks like a serious investigation of credit default swaps and other derivatives has been initiated by the Department of Justice, and the investigation is specifically looking at the clearing of those instruments. (See also here)
What "clearing" means here is the process of actually settling the contracts for the derivatives, and much of it is done by one entity, Markit Group Ltd., which is owned by the Wall Street Banks.
This appears to be an anti-trust investigation, and my guess is that what they are looking at is that the buy and the sell prices, which always have a slight gap, this difference goes to the clearing agency and or brokerage, might have been manipulated through collusion to magnify this amount, and the profits thereof.
Here's hoping that some bankers are frog-marched off of Wall Street.
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