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Market Watch is reporting that the FBI is scrutinizing 14 companies related to the mortgage industry at all levels of the securitization process as part of their investigation in to the mortgage meltdown.
Agents are looking into allegations of fraud in several stages of the mortgage securitization process, in which home loans are packaged up by investment banks and sold as securities to institutional investors, Brian Hale, an FBI spokesman explained. He declined to name the companies being investigated.
Housing Wire has some additional information on the FBI’s mortgage company investigation which has yet to name any company names.
The FBI is the latest to get in to the investigation act and I would suspect that we will see many more of these over the next year and a half. Housing Wire notes that bankrupt firms are not exempt from the investigation which means that executives that ran the companies that made an early exit may still be on the hook for activity at the now-defunct lenders.
I can’t WAIT to hear who the “Gang of 14″ are!! See, this is another example of what will send the markets spinning with the unknowns. There are so many variables out there, no one can predict what is going to happen. In the end, it will be good because it will be a cleansing. I’ve said for a long time, a lot of people need to go to jail with long sentences. So much fraud and corruption, Morgan, et al are correct, we’re just ending Phase One of all this, with a couple of more phases to go.
Wow.
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