Mortgage inquiry launched by Securities and Exchange Commission

The Securities and Exchange Commission is examining major Wall Street banks to determine their vulnerability to home-loan defaults, two people familiar with the accounting inquiry said.

The supervisory program is designed to allow the SEC to monitor and respond quickly to financial or operational weakness in the firms.

The regulatory checks are expected to include Wall Street's five biggest investment banks, starting with Goldman Sachs Group and Merrill Lynch & Co. Goldman Sachs and Merrill Lynch declined to comment.