TRENDS UPDATE: FBI conducts sub-prime fraud inquiry
January 30, 2008 by Stefan SwanepoelAmerica's Federal Bureau of Investigation (FBI) announced today that they are investigating 14 financial and mortgage companies for insider dealing and fraud as part of a criminal inquiry into the sub-prime crisis. The FBI suspects that the house price boom, once seemingly endless, encouraged mortgage lenders to take increasingly large risks, making loans to people with weaker and weaker credit histories as they sought new customers.
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