IndyMac Is Included In FBI Fraud Inquiry [Two Dozen Banks Under Scrutiny?!!]

The Wall Street Journal ^ | 2008-07-71 | Gary Fields & John R. Wilke

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WASHINGTON -- Failed lender IndyMac Bank is among nearly two dozen banks under scrutiny by the Federal Bureau of Investigation for possible mortgage fraud, U.S. officials said.

The big Pasadena, Calif., bank was seized by regulators last week, the third-largest bank failure in U.S. history. It specialized in home loans to borrowers who lacked full documentation for their income or assets and have a higher default rate than other loans.

The IndyMac investigation began shortly before the bank was seized last week, a law-enforcement official said.

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In a statement Wednesday, the FBI said the number of banks under investigation for mortgage fraud is now 21.

We know of two: Countrywide and IndyMac. Now, the question remains as to the identity of the other nineteen banks potentially involved in mortgage fraud.

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FYI, nineteen other banks under investigation!

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Note actual publication date is 2008-07-17, not 2008-07-71. This is a typo error.

[TigerLikesRooster]

Do they include investment banks?

[Alia]

In a world and/or age of no "special rights" and/or "preferences" what I'm about to say would never come up. But we aren't there. I wanna know if the culprits of the mortage crisis usually vote Democrat or Republican.

[Paulus Invictus]

Will they arrest Chuckie Schumer? Since when are Senators free from prosecution?

[quack]

Why would they arrest him for pointing out facts?As much as I don't like Schumer,he was the least of Indymacs problems.They were closing at $1.45 a share on June 9th.April 13th of 2007,they closed at $28.97 per share.Chucky had nothing to do with that.

Schumer letter (June 26,2008)

Indymac stock history (http://finance.yahoo.com/q/bc?s=IDMC.PK&t=5y&l=on&z=m&q=l&c=)