Toronto Globe & Mail (03/19/08); Mikkelsen, Randall
The FBI announced that 17 companies are now under investigation to determine their roles in the subprime mortgage crisis, with agents examining the mortgage securitization process, insider trading and asset valuation disclosures. According to Neil Power, chief of the FBI's economic crimes unit, "The problem is that banks weren't doing their due diligence." He adds that most of the cases are in New York and California, involve large corporations and could take years to sort out. The FBI has 100 agents looking into corporate fraud allegations, while 153 are examining loan originations and 150 are investigating possible securities fraud.
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