Wednesday, July 16, 2008

"Chief! Jethro's Writing Home Loans Again!"

From the AP:


     The FBI is investigating failed bank IndyMac Bancorp Inc. for possible fraud, an official said Wednesday of the government's latest target following the collapse of the nation's subprime mortgage market.

     It was not immediately clear how long the FBI's probe of the bank has been ongoing , or whether it was opened before last Friday's takeover of IndyMac by the Federal Deposit Insurance Corp.

     The investigation appears to be is focused on the company and not individuals who ran it, a law enforcement official told The Associated Press. The official spoke on the condition of anonymity because he was not authorized to speak publicly about the investigation.

     IndyMac Bank's assets were seized by federal regulators after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.

     The bank is the largest regulated thrift to fail in the last 20 years, regulators said.

     *Editor's note: those must be one helluva set of (toothless) "regulations".

     Are the "regulators" all former Enron guys?   

     Across the country, reports of mortgage fraud have soared over the past year as the subprime mortgage market collapsed, and defaults and foreclosures soared.   


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