IndyMac Bank being investigated for Mortgage Fraud

April 12, 2008

IndyMac Bank is being investigated for mortgage fraud by the FBI, as per media reports published by some leading US newspapers. The reports state that the FBI is focusing on accounting fraud over the documentation of mortgage backed securities. The FBI, as per the report is also considering the possibility of insider trading. The FBI is reported to be investigating 21 banks which includes Countrywide Financial, the parent company of IndyMac Bank. Hopefully the FBI will come out with something which prevents fraud in the future in the US banking sector making it as healthy as it once used to be.

Posted in Banking Frauds