The FBI Probes The Subprime Industry


Veracity Jones

The Federal Bureau of Investigation has broadened its probe of the
subprime mortgage industry. They are investigating alleged accounting
fraud, insider trading, and the securitization of loans. The F B I’s
involvement raises the stakes, since the investigation could result in
criminal charges.

This crisis was inevitable. A national rash of bad practices,
questionable loan approvals, and so- called “creative” financing badly
damaged the American housing industry. It doesn’t take a genius to
figure out that the creative part included misrepresentation of the
quality and security of the loans they originated.

Foreclosed homes decorate the American landscape, forcing homeowners
who were in over their heads to pick up the pieces of their shattered
lives and decimated credit. One could argue that these homeowners
should have known better. But there is no doubt that those
originating and selling these loans knew better.

Let justice be served and sanity restored.


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