FBI Launches Subprime Investigation

Law360, New York (January 30, 2008, 12:00 AM EST) -- Subprime mortgage lenders can now add the Federal Bureau of Investigation to the list of agencies taking a closer look at their lending practices, after the FBI reportedly launched an investigation into 14 mortgage companies.

The FBI has begun a probe into accounting fraud and insider trading in the subprime industry, according to The Wall Street Journal. The FBI will also work with the U.S. Securities and Exchange Commission on the agency's ongoing civil inquest into the packaging and sale of loans to customers.

The FBI's...
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