The FBI, responding to the subprime loan crisis that has rocked Wall Street and led to the worst housing slump since the Great Depression, has 21 corporate fraud probes of investment banks, hedge funds and mortgage companies. It also has more than 1,400 pending mortgage fraud cases looking at individuals such as brokers, appraisers and borrowers. People familiar with the probe have said that among the other companies under FBI scrutiny is Countrywide Financial Corp., the largest U.S. mortgage lender. Countrywide was taken over by Bank of America Corp. on July 1. Last month, two former Bear Stearns Cos. investment managers, whose hedge funds’ collapse helped ignite the subprime meltdown, were indicted by a federal grand jury in Brooklyn, New York. Both men have said they will fight the charges. More
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