FBI investigating 14 firms in subprime crackdown

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News item: A quickie from Rob via the comment section: Reuters reports, ‘The FBI has opened criminal investigations into 14 corporations as part of a crackdown on improper subprime lending, agency officials said on Tuesday. ... FBI officials told reporters the probes involved potential violations, including accounting fraud and insider trading.’

Bloviation: It has been my contention the Justice Department has been very slow to investigate and prosecute mortgage fraud that is, by almost any account, widespread. When Justice wants to move quickly and send a message, it is more than capable (Ask any former employee of Arthur Andersen what happens when Justice throws its weight around). That’s not happening at the moment.

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