BusinessCompany NewsFBI launches probe into sub-prime accounting

FBI launches probe into sub-prime accounting

FBI investigators to examine accounting for for sub-prime mortgages

A probe in sub-prime accounting has been launched by the Federal Bureau of
Investigation.

The Wall Street Journal reports that the FBI is investigating 14
companies and will concentrate on how the loans were securitised and how
companies packed sub-prime mortgages into the stacks of debt the banks held as
assets. The FBI would not name the companies investigated.

‘The bundling of these loans is so huge, it’s difficult for us to tear apart
each of those bundles and say, “OK, this bad loan is causing this securitisation
to fail”,’ Sharon Ormsby, head of the financial crimes section in the FBI’s
criminal investigative division, said.

Goldman Sachs and Morgan Stanley admitted in their annual reports this week
that government authorities had requested information from them, but both banks
declined to specify which arms of government had made the requests.

Further reading:

Further writedowns expected for US
banks

Bankers sweat over sub-prime
accounting

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor