FBI Eyes IndyMac For Possible Fraud

Home Loans Made To Risky Borrowers Are Focus Of Probe

(CBS/ AP)  Now-defunct IndyMac Bancorp Inc. is under investigation by the FBI for possible fraud in connection with home loans made to risky borrowers, The Associated Press has learned.

CBS News' Stephanie Lambidakis confirmed that the FBI is investigating the failed bank and that the probe began before its collapse.

The investigation is focused on the company - which was taken over last Friday by the FDIC - and not individuals who ran it, according to a law enforcement official who was not authorized to speak publicly about the investigation.

IndyMac Bank's assets were seized by federal regulators after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.

The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.

“The FBI currently has 21 investigations related to the sub-prime market industry," FBI spokesman Richard Kolko told CBS News. "We receive information from a variety of sources on a daily basis, and we have an obligation to review each allegation on its merits. Given the volatility of today’s subprime market, we have seen an increase in sub-prime related complaints."

The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think the lender could meet its depositors' demands.

FDIC spokesman David Barr could not immediately be reached for comment Wednesday.

Over the last year, and faced with a cratering housing market, the FBI has opened a wide-ranging probe of companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors.

Countrywide Financial Corp., the nation's largest mortgage lender, is also under scrutiny.

Additionally, two former Bears Stearns managers were indicted last month on conspiracy and securities and wire fraud charges alleging they lied to investors in a hedge fund that tanked last year as the subprime market collapsed. Those charges marked the first criminal charges to arise on Wall Street from the subprime mortgage debacle.

[dougmsbbs]

"Who is going to eye the FBI for possible fraud?"

We''ll set up a whole new agency to do it. Yea! Thats it! Hire an upteen dozen new people, get about a thousand people to count the money the Gov''s gonna throw at it. And issue a press release, of course. WITH photo op!
You tax dollars at work. Throw them all out, and maybe the news ones will be to inexperienced to do any real harm for a while...

[vnveteran72]

FBI Guy #1: "Let''s see now, here on these next 300 pages, there seems to be nuthin'' but No Interest loans given to something they''re calling Rove Enterprise, LLC".....

FBI Guy #2: "So basically, there were only these 2 entities responsible for the entire failure of this Institution, counting these other entries for Paraguay Escape Ranch, Inc."......

FBI Guy #1: "Must be some kind of Terrorist Group or somethin''".......

[wardoglrs]

It takes crook''s to bring down crook''s. This is the best we can do.

[hunterdon6]

Do the CEO''s of these companies still get their year end bonus for doing such a great job?

[atxchill]

Possible fraud? Come on, dont insult our intelligence. You know there was/is fraud, thats the corporate way of doing business in America dont you know. And dont you know theyll get away with it, oh wait, they already have.

I dont know who Im more disgusted with, the crooks in corporate america or the American public for letting it go on for decades and literally doing nothing about it.

Why? Because they dont have time, money, blah, blah, blah, but you bet there will then tens of thousands of people filling sports stadiums around the country all fall and winter. Way to keep those priorities in check. The future will look back on this culture with distain, and disgust.

[l8c6]

Hmm, perhaps our resources just got too caught up in trying to track down all the evil doers hiding out in caves in the vast deserts of the middle east and failed to locate the evil doers and terrorists running the financial system.

[standlee5]

The investigation is focused on the company - which was taken over last Friday by the FDIC - and not individuals who ran it,..."

Well, what''s the point. That''s really gonna send a message.

[l8c6]

"Obviously, Capitalism is a system in which the practice of deceit and fraud has been refined and elevated to the status of a religion."
Wrong. Capitalism is a new economic system where wealthy companies receive tax incentives and bailouts and the regular worker is told to work or starve and that any attempt to provide health care is communism unless you are a congressman or government worker.
All hail the wealthiest of society and rest of you kiss off. Health care ? You don''''t need no stinkin'''' health care!!

Posted by magoo2u1

Yep, I guess the Star Trek episode "Cloud Minders" didn''t inspire the generation of antisocial narcissistic hoes running the nation into ruin.

[l8c6]

How many americans have access to privacy with Swiss bank UBS, the bank right wing conservative with everyone but himself Phil Graham of Texas is a chairman of. It''s news with the exception of the U.S. private corporate run media, that 100s of very wealthy americans have avoided paying taxes for quite some time. Is tax evasion available to all americans or just the oligarchs? Anyone care? If not, then american revolution is truly dead.

[whitemale08]

Indymac and Countrywide were Enron style test models for a Freddie & Fannie garbage dump.

This will cascade through out the Federal Reserve Banking System which will wipe out all your pension funds, 401k.

It''s over folks! Time to buckle up and ready to ride!

[daysrnumbrd]

"The investigation is focused on the company - which was taken over last Friday by the FDIC - and not individuals who ran it, according to a law enforcement official..."

My car will soon be investigated for running over that old fartt in the cross walk last week.

Bad Honda... baaaaad Honda!

[daysrnumbrd]

I would volunteer to flip the switch myself.

Posted by getoffmine at 04:37 PM : Jul 16, 2008
...........

Take a number!

[daysrnumbrd]

""The investigation is focused on the company - which was taken over last Friday by the FDIC - and not individuals who ran it.."

The prime suspect is the sofa in the CEOs office. May be the lamp was involved- not the individuals who ran it.
Couldn''t be them , they are wealthy and above reproach. I''ll bet you nobody does a day in jail for this new incident of pick-pocket against the tax payers.

Posted by magoo2u1 at 06:28 PM : Jul 16, 2008
.............

LOL!!!

Sad, but true.

[it_oldtimer]

"Foreclosure Phil" (Gramm):

A former Republican Senator (chairman of the Senate banking committee in the 1990''s) who helped screw up the global financial system, and who now works for a Swiss bank, could end up in charge of US economic policy.

Foreclosure Phil is now also an advisor to John McCain on economic matters. He''s been mentioned as a possible Treasury secretary should McCain win.

Can you imagine? That''s not just "more of Bush" - that''s actually "worse than Bush".

[magoo2u1]

"Obviously, Capitalism is a system in which the practice of deceit and fraud has been refined and elevated to the status of a religion."
Wrong. Capitalism is a new economic system where wealthy companies receive tax incentives and bailouts and the regular worker is told to work or starve and that any attempt to provide health care is communism unless you are a congressman or government worker.
All hail the wealthiest of society and rest of you kiss off. Health care ? You don''t need no stinkin'' health care!!

[magoo2u1]

""The investigation is focused on the company - which was taken over last Friday by the FDIC - and not individuals who ran it.."

The prime suspect is the sofa in the CEOs office. May be the lamp was involved- not the individuals who ran it.
Couldn''t be them , they are wealthy and above reproach. I''ll bet you nobody does a day in jail for this new incident of pick-pocket against the tax payers.

[david1737]

Google Phil Gramm and the Gramm Leach Act.

Gramm and his wife have there fingerprints in both the Subprime meltdown and Enron.

They''re also partly responsible for the sudden rise in oil prices.

Here''s the worst part Phil Gramm is the co-chair of McCain''s campaign, and leading econ. adviser.

[it_oldtimer]

Obviously, Capitalism is a system in which the practice of deceit and fraud has been refined and elevated to the status of a religion.

[david1737]

Are any of these people friend''''s of Bush, as were Enron execs? Just wondering, since oversight is not one of this administration''''s strong points.

Posted by RandyNason at 03:56 PM


Yes! Google the Gramm Leach Act and pay special attention to Phil Gramm McCain''s econ guru and co-chair of his campaign.

Here''s a quote from an AP article:

"The general co-chairman of John McCain %u2019s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law (see Gramm-Leach Act) which contributed significantly to today%u2019s Sub Prime meltdown and economic turmoil."

Also consider the fact that McCain was one to the Keating 5.

Google S&L scandal.

See how W, Jeb, Neal, and Bush senior were all in some way implicated in the S&L scandal of the late 1980s. The common theme here is deregulation in the loan industry.

[bogusbones]

with the intense scrutiny and the demand by this administration to adhere to federal guidelines i am shocked that a bank would even consider fraud. maybe they modeled their bank after a corrupt institution at 1600 pennsylvania ave, washington d.c.