The FBI is investigating Indymac Bancorp for fraud, a source tells CNN.
The California-based bank was taken over by federal regulators last week. Indymac's collapse was the second-largest bank failure in U.S. history.
A source said the federal government is looking into whether the bank engaged in fraud when it made home loans to high-risk borrowers. The source said the investigation is focused primarily on the company, not individuals.
In a written statement, the FBI didn't specifically comment on Indymac but noted that it is investigating 21 corporations in the subprime lending market for possible mortgage fraud.
Wednesday, July 16, 2008
IndyMac investigated for fraud by FBI