Wednesday, July 16, 2008

IndyMac investigated for fraud by FBI

CNN reports:
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.

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