BREAKING: Subprime Debacle Goes Criminal. FBI Investigates 14 Companies


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!

About Author

Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.


  1. im sure all of these companies done something wrong. all the banks and companies who offer bank accounts also been doing this for some time. I have a friend who offers second chance bank account through a bank. it’s all a big rip-off. I’m sure loan companies been doing the same thing.

  2. Is stupidity a crime? I’m not talking about consumers who are told there is a way to have the American dream. But, all those financial decision makers that we entrust our well being to with our homes being the playing piece.

    I am not finding the employees of these lenders any more educated on how the short sale or foreclosure process works.

  3. I’m not sure if this is nationally or just here in Arizona, but I heard rumors of making mortgage brokers and other in that industry go through some sort of certification process like that of a real estate agent.

  4. Couldn’t agree with you more Real Estate investor girl. It’s a stupidity crime. What’s happened down in South Africa, is they’ve now introduced a national credit act to prevent the malpractice of lending credit to people who actually just plain and simply can’t afford it. This just causes more choas for the companies economy than we can actually afford right now, and same goes for subprime mortgage lenders. The only difference was that our lending was by the banks….


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