Posted by D. Cupples | Yesterday, the FBI announced that it has opened investigations into 14 companies regarding the sub-prime mortgage crisis. With surprising kindness, the Agency has (for now) agreed to not disclose those companies' names to us taxpayers.
According to BBC News, the investigation is targeting developers, sub-prime lenders, and investment banks. FBI Economic Crimes Unit chief Neil Power told CNN:
"'On insider trading, we're looking in some cases at whether executives were aware that the value of their holdings would be going down and the executives traded on that information,' said Power.
"'On accounting fraud, we're looking at housing developers who may have reported cash reserve accounts to reflect falsely inflated values....'
The number of "suspicious activity" reports reportedly rose from 3,000 in 2003 to 35,000 in 2006 and to 48,000 in 2007.
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