FBI investigates 14 firms in subprime

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FBI investigates 14 firms in subprime crackdown

WASHINGTON (Reuters) - The FBI has opened criminal investigations into 14 corporations as part of a crackdown on improper subprime lending, agency officials said on Tuesday.

FBI officials told reporters the probes involved potential violations, including accounting fraud and insider trading.

They did not identify the companies. But the probes reached across the industry to include developers, subprime lenders, companies that securitized loans and investment banks that held them, said Neil Power, head of the FBI's economic crimes unit.

"Currently there are ... 14 investigations, inquiries open right now," he said.

Cases involving individual loans have also risen sharply in a crackdown on subprime lending irregularities, officials said.

"We anticipate in the next year that another wave of adjustable rate mortgages will reset and with that we anticipate that the mortgage corporate fraud potential cases to increase," said Sharon Ormsby, head of the FBI's financial crimes section.

FBI investigates 14 firms in subprime crackdown | Reuters
 
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