FBI to Investigate Mortgage Crisis
Posted on Jan 29, 2008
The FBI has announced an investigation into the practices of more than a dozen companies related to the subprime mortgage crisis that has destabilized the American and global economies. The Securities and Exchange Commission has already launched investigations of its own, and though it’s nice to see the authorities crack down on improper practices, it would be nice to have some oversight before there was a crisis.
The FBI is investigating 14 companies embroiled in the sub-prime mortgage crisis as part of a crackdown on improper lending.
It did not identify the companies but said the investigation encompassed developers, sub-prime lenders and investment banks.
FBI officials said the agency was looking at instances of accounting fraud and insider trading.