NEW YORK — The financial sector largely shrugged off reports of new federal investigations into banks' roles in mortgage-bond deals, with shares slightly lower as additional investigations largely were expected.

Federal prosecutors, working with securities regulators, are conducting a preliminary criminal probe into whether several major Wall Street banks misled investors about their roles in mortgage-bond deals, a person familiar with the matter told The Wall Street Journal. Many major Wall Street banks created collateralized debt obligations at the behest of players that made bets against the deals — and banks themselves sometimes bet against the deals. Bearish bets paid off when the mortgage market crashed.

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