Financial Times FT.com

FBI eyes big business in mortgage fraud probe

By Stephanie Kirchgaessner in Washington and Hal Weitzman in Chicago

Published: June 19 2008 22:09 | Last updated: June 19 2008 22:09

Federal investigators are homing in on 19 “large corporations” – including investment banks, credit rating agencies, accounting firms and hedge funds – as part of a broad probe into mortgage fraud.

Robert Mueller, director of the Federal Bureau of Investigation, did not identify the companies on Thursday, but said the majority of the large corporate cases involved accounting fraud, insider trading and failures to disclose – with criminal intent – the proper evaluation of securitised loans and derivatives.

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