Citing The New York Times, RTTNews reports the Federal Bureau of Investigation and the Securities and Exchange Commission are conducting a joint investigation of Countrywide Financial Corp. A company spokesperson says Countrywide is not aware of the investigation, which is reportedly part of a larger inquiry designed to uncover the "root" of the subprime mortgage crisis.
The FBI investigation is reportedly centered on whether or not the mortgage lender lied in regulatory filings regarding its financial position and quality of mortgage loans.
Apparently Countrywide is one of 14 companies being investigated for securities fraud, accounting fraud, insider trading and other violations. The investigations began nearly a year ago, the story says. The lender is also the subject of a class action lawsuit related to the mortgage fraud.
Despite the latest news, Bank of America is still moving forward with its plans to buy out the troubled mortgage lender.