It was bound to happen. The subprime mortgage fiasco is now the target of investigations by several law enforcement organizations.
The FBI today announcing it is looking at 14 companies—companies that may have committed fraud in the handing out of loans to mortgage borrowers who should not have gotten loans in the first place because of their obvious inability to be able to make payments on time.
Also in the picture—the Securities and Exchange Commission, working along with the FBI, to see whether there were insider trading violations.
Seperate from these investigations, there are ongoing ones at the state level in both New York and Connecticut; they are taking a close look at Wall Street banks–banks that may have hidden information from investors who purchased certain securities that had high risk subprime loans bundled in.
And now, it gets really interesting!