Thu, Jul 17, 2008
Failed bank IndyMac is under investigation by the FBI for possible fraud involving its mortgage lending, unnamed law enforcement officials have said.
It was not immediately clear how long the FBI's probe of IndyMac has been
underway. The bureau said yesterday it had raised to 21 from 19 the number of
corporate targets in its investigation of the mortgage industry.
US
banking regulators seized mortgage lender IndyMac on Friday after withdrawals by
panicked depositors led to the third-largest banking failure in US history.
The FBI declined to comment on IndyMac, and law enforcement officials
spoke about the bank on condition that they not be identified.
Evan
Wagner, a spokesman for IndyMac said: "The first we heard of the investigation
was in the press accounts today. We're not in a position to confirm or deny (the
investigation) because it's an uncorroborated press account."
He added:
"It shouldn't be surprising that there is an investigation because of the size
of the bank failure."
Frank Sillman, chief executive officer of IndyMac
Mortgage Bank, was not immediately available for comment.
"The FBI
currently has 21 investigations related to the subprime market industry. We
receive information from a variety of sources on a daily basis, and we have an
obligation to review each allegation on its merits," spokesman Jason Pack said
when asked about the bank.
"Given the volatility of today's subprime
market, we have seen an increase in subprime related complaints. To protect the
integrity of our cases, we do not confirm or comment about specific companies
that may or may not be a part of our investigations," he said.
Bureau
spokesman Richard Kolko, asked whether IndyMac was under investigation, noted
the expansion of the industry probe but said he had no names.
David
Barr, assistant director, office of public affairs for the Federal Deposit
Insurance Corporation said the FDIC is not commenting.
Reuters
© 2008 irishtimes.com