New Fed Task Force Subpoenas 11 in Mortgage Fraud Probe

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From ABC News:

A new federal and state task force was created [yesterday] to investigate mortgage fraud that contributed to the 2008 financial crisis, and the panel immediately subpoenaed 11 financial institutions.

Attorney General Eric Holder said the new unit would consist of 55 Justice Department lawyers and analysts and 10 FBI agents to work with state attorney general’s offices to investigate how mortgage backed securities were created, sold and valued by financial institutions. The creattion of the unit was announced by President Obama in his State of the Union address on Tuesday.

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Making the announcement the attorney general disclosed that the Justice Department has sent civil subponeas to 11 financial institutions as part of the investigation. They did not identify the targets of the subpoenas.

“You can expect more to follow,” Holder said in reference to the subpoenas being sent out. “Of course, I can’t go into detail about our existing investigations. But I can tell you that significant efforts are moving forward, by both federal and state authorities.”

The working group will be co-chaired by the heads of the Justice Department’s Civil and Criminal Division, John Walsh the U.S. Attorney from Colorado, Robert Khuzami the SEC Enforcement Director and Eric Schneiderman the New York Attorney General.

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