Looks like the FBI is checking up on the whole sub-prime debacle:
America’s Federal Bureau of Investigation is investigating senior banking executives for insider dealing and fraud as part of a criminal inquiry into the sub-prime crisis, the agent leading the inquiry said yesterday.
Neil Power, the head of the FBI’s economic crimes unit, is heading the most far-reaching criminal investigation into the practices of the mortgage industry since it began to melt down last year, after years of increasingly lax lending finally fed through into an increase in defaults on home loans.
The FBI is investigating every level of the conspiracy that it believes perpetuated the housing boom and ultimately resulted in millions of Americans losing their houses, investment banks losing billions of dollars and the chief executives of Citigroup, Merrill Lynch, Bear Stearns and UBS resigning.
Some pretty strong language there: ‘economic crimes’, ‘conspiracy’, etc. How much responsibility do lenders have for the housing bubble and crash in the US? How much more conservative are lenders in BC?
Hat-tip to scullboy for the link.