White Collar Crime
Feds Probe Possible Fraud in IndyMac Bank Failure
Posted Jul 16, 2008, 04:46 pm CDT
By Martha Neil
In the wake of the FDIC's takeover Friday of IndyMac Bancorp Inc., the FBI is now investigating possible fraud by the lender concerning mortgage loans made to high-risk borrowers.
"Countrywide Financial Corp., the nation's largest mortgage lender, is also under scrutiny," reports the Associated Press. "Over the last year, and faced with a cratering housing market, the FBI has opened a wide-ranging probe of companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors."
According to Reuters, 21 such companies are now being investigated.
Related coverage:
L.A. Land (Los Angeles Times): "The IndyMac fiasco: a three-day run of federal incompetence"
ABAJournal.com: "Feds Delay IndyMac Foreclosures"
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Comments
Posted by anonymous - 2 months, 3 weeks, 5 days, 40 minutes ago
On Charlie Rose last night, it said that 25% of the FDIC reserves went to just the bail out of this one bank.
Maybe whistleblower awards will apply to people that come forth with evidence related to these frauds, since government bailouts are considered.