Prosecutors Probe Wachovia, Golden West

Posted by Orb Staff on November 20, 2008 No Comments
Categories : Residential Mortgage

The U.S. Securities and Exchange Commission has opened an investigation to determine if Wachovia Corp. subsidiary Golden West Financial has misled borrowers and investors, according to San Francisco U.S. Attorney Joseph Russoniello.

Bloomberg reports that the probe centers on whether Golden West fraudulently placed borrowers into mortgages by using inaccurate financial information or intentionally switching the borrowers into more expensive mortgages. The company may have also misled its investors regarding the loans' quality.

Source: Bloomberg

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