Bloomberg- FBI Director Robert Mueller said the agency’s investigations into the subprime loan meltdown may uncover financial crimes committed by hedge funds and private equity firms.
Federal Bureau of Investigation agents have opened 19 criminal probes of companies in connection with the lending crisis, focusing on accounting fraud, insider trading and allegations of deceptive sales practices. Mueller, speaking today to an American Bar Association group in Washington, said he expects more to come as housing prices continue to fall.
“These investigations may well lead to other instances of fraud, from investment banks and private equity firms to hedge funds,” Mueller said. “We do not take these investigations lightly.”
