Monday, May 5, 2008

Subprime Crisis to become the Energizer Bunny of Litigation


"Prosecutors in the Eastern District of New York in Brooklyn are stepping up their scrutiny of players in the subprime-mortgage crisis, focusing on Wall Street firms and mortgage lenders, the Wall Street Journal said on its Web site on Sunday.
A task force of federal, state and local agencies will look into potential crimes ranging from mortgage fraud by brokers to securities fraud, insider trading and accounting fraud, the Journal said.
The Federal Bureau of Investigation is already targeting major corporate insiders and criminal groups in its investigation of fraud in the mortgage lending industry. The FBI has said it is investigating 19 companies in mortgage cases."
Their is also a great article in the NY Times on the ramping up of subprime litigation as well. Hat tip the The Posse List, for bringing that to my attention.

No comments: