FBI mortgage probe examining 17 large firms (Reuters)

[Eugene]

Source: Reuters

FBI mortgage probe examining 17 large firms
Tue Mar 18, 2008 6:54pm EDT

By Randall Mikkelsen

WASHINGTON (Reuters) - The FBI's criminal probe of the
mortgage lending industry has grown to 17 firms, involves
large companies, and could take years to conclude, bureau
officials said on Tuesday in a Reuters interview.

The investigation now involves 17 firms, up from 16
previously acknowledged, the officials said.

"The corporate fraud cases are pretty large entities,"
said Neil Power, economic crimes unit chief of the Federal
Bureau of Investigation's financial crimes section. "The
majority I would think we're looking at years."

Power declined to comment when asked if the FBI was
looking into the collapse of Bear Stearns, which led to an
emergency sale to JPMorgan Chase last weekend. However,
he said, "common sense would indicate that we would look
at something that big."

-snip-

Read more: http://www.reuters.com/article/newsOne/idUSN1849495720080318

[magellan]

1. Have they said which firms?

We have the right to know.

[aquart]

2. "That big"? Citigroup, we know that's one. Lehman?

[seafan]

3. Beazer Homes, Doral Financial Corp, Countrywide listed as under FBI investigation

FBI mortgage probe examining 17 large firms. March 18, 2008

.....

Among companies implicated in FBI mortgage probes are Beazer Homes and Doral Financial Corp. A former Doral treasurer was indicted for investment fraud earlier this month. He denied the allegations and the company declined to comment.

The largest U.S. mortgage lender, Countrywide, is also under FBI investigation, authorities have said, although the FBI has declined to comment and Countrywide said it was unaware of any investigation.

It's called *cleaning house*. And it's been a long time coming.

[snot]

4. Too little too late. We need regulators UP FRONT.

I'm glad to know they're investigating; but I fear that those who should bear ultimate responsibility will be long gone -- together with their obscene profits -- before any of these investigations achieve any results.

[formercia]

6. They don't need to steal the money

just give each other obscene bonus and severance packages.

[havocmom]

5. have said for a long time that several big lenders' top officers need a good probing

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