“Fourteen companies, including some of the world’s largest banks, are being investigated over possible accounting fraud, improperly securing loans and insider trading during the sub-prime mortgage scandal.
The FBI said yesterday that it had opened criminal investigations into improper lending in the American housing market.
Neil Power, head of the FBI’s economic crimes unit, told journalists that the investigation includes the companies that securitised the loans and investment banks that bought those products, as well as the developers and sub-prime lenders.
“We’re looking at the accounting fraud that goes through the securitisation of these loans,” said Power.
The FBI did not name the companies it is investigating.
Several of the world’s largest banks separately revealed yesterday that they are cooperating with official investigations. Bear Stearns, Goldman Sachs and Morgan Stanley all announced, via official filings to the US Securities and Exchange Commission, that government investigators have asked for information about their sub-prime lending practices.
According to Reuters, Swiss bank UBS - which today unveiled new sub-prime losses - is also being investigated by the FBI.”
F.Y.I. : In order to save time, I have been recently utilizing digg’s “blog it” feature to share what I feel is valuable and informative information that my readers may not have seen. Scroll down to the end of the post and select “read more” to see the article in full.
In Bush’s State of the Union address he referred to the housing crisis but failed to mention that it may very well been concocted by these international banks that the F.B.I. is now investigating.
He droned on and on about trusting the American people with home ownership.
Clearly, we should not trust our economic system that produces a housing crisis, depressions, recessions, the loss of American jobs and a consumer based false economy.
What is your prediction? Will the investigation prove conscious and calculated tampering with our economy and home ownership?
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