FBI looking into IndyMac Bancorporation by Michaela Vargova

WASHINGTON - The FBI investigation of a failed bank IndyMac Bancorp Inc. for possible fraud appears to be focused on the company and not individuals who ran it. It is said the bank is the largest regulated thrift to fail in the last 20 years. From the beginning it was not apparent how long the FBI's inquiry of the bank has been going on — or if it was opened before Friday's takeover of the corporation by the Federal Deposit Insurance Corporation (FDIC). IndyMac Bank's estate was seized by federal regulators after it surrendered to the pressures. All operations were transferred to the FDIC which is now running the bank under the name IndyMac Federal Bank, FSB. Shortly after the FDIC took over all operations, most depositors were given immediate access to their accounts.

It remains unclear what penalties IndyMac could envisage now that it has been overtaken by the FDIC. However, companies guilty accused of illegal activity can face civil charges and be forced to pay sanctions.
As the subprime mortgage market collapsed over the past year, reports of mortgage fraud have soared across the country. Over the last year, the FBI has initiated a wide-ranging investigation of companies across the financial services industry, from mortgage lenders to investment banks. In all, the FBI is in present time probing 21 companies that are tied to the subprime mortgage crisis on Wall Street, up from 19 last month. Authorities are looking into at least 1,400 mortgage fraud cases nationwide, while more than 400 real estate industry players have been indicted since March.

by Michaela Vargova for PocketNews (http://pocketnews.tv)

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