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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Wednesday, July 16, 2008
IndyMac investigated for fraud by FBI
CNN reports:
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