Federal prosecutors and New York's attorney general are investigating the credit-default swap market. Federal prosecutors in Manhattan announced in a statement Monday that the office is working with state Attorney General Andrew Cuomo in the probe. Cuomo's office did the same. The announcements came after The New York Times reported on the investigation today.

The U.S. attorney's office says its primary role will be to determine whether any federal laws were violated. Cuomo's office says the situation calls for unprecedented levels of effort and cooperation to ensure that markets are stable, free of fraud, and purged of corruption.