WASHINGTON (AFP) — The FBI is investigating failed IndyMac Bank for possible mortgage fraud, US media reported on Thursday, citing US officials.
The California-based IndyMac Bank, which government regulators seized last week, is among 21 banks being probed by the Federal Bureau of Investigation, the Wall Street Journal reported.
The investigation began shortly before the bank was placed under the control of the Federal Deposit Insurance Corporation (FDIC) in one of the biggest bank closures in US history.
Officials would not offer more details about the probe, the paper said.
In cases involving other banks, the FBI is "focusing on accounting fraud, the documentation of mortgage-backed securities and insider trading," the paper wrote.
The FBI said in a statement the number of banks under investigation came to 21.
One of the banks identified is Countrywide Financial, the former parent company of IndyMac.
Evan Wagner, vice president of corporate communications at IndyMac Bank, was quoted as saying that "it shouldn't be a surprise if someone is investigating, however, we can't confirm that one way or another."
The mortgage lender reopened as IndyMac Federal Bank on Monday.
The collapse of the bank, one of the biggest bank failures in US history, came after months of mortgage and foreclosure crisis highlighted by a surge in defaults and a plunge in housing prices.
The FDIC has said that it was seeking to return the bank to private operation within a few months.
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