FEDS LAUNCH SUBPRIME AUTO INVESTIGATIONS Gene
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Posted On: 08/05/2014 9:01:46 AM
FEDS LAUNCH SUBPRIME AUTO INVESTIGATIONS
General Motors disclosed Monday that the Justice Department has opened an investigation into its lending arm over subprime auto loans that were packaged and sold to investors. NYT’s Michael Corkery and Jessica Silver-Greenberg: “The inquiry is being undertaken amid worries among some regulators that checks and standards are being neglected as the subprime auto loan market surges, in a small, yet disturbing, echo of the subprime mortgage crisis. Those concerns — and signs that some borrowers’ loan applications had false information about income and employment — were the subject of a front-page article in The New York Times last month. …
“The office of Preet Bharara, the United States attorney for the Southern District of New York, also is looking at other companies, say people briefed on the matter. In the G.M. investigation, Mr. Bharara is reviewing whether the lender sold questionable auto-loan investments to investors, they said. At the center of the investigation, the people said, is whether the lender fully disclosed to investors the credit worthiness of the borrowers whose loans made up the complex securities.”
http://nyti.ms/1APYlj0
General Motors disclosed Monday that the Justice Department has opened an investigation into its lending arm over subprime auto loans that were packaged and sold to investors. NYT’s Michael Corkery and Jessica Silver-Greenberg: “The inquiry is being undertaken amid worries among some regulators that checks and standards are being neglected as the subprime auto loan market surges, in a small, yet disturbing, echo of the subprime mortgage crisis. Those concerns — and signs that some borrowers’ loan applications had false information about income and employment — were the subject of a front-page article in The New York Times last month. …
“The office of Preet Bharara, the United States attorney for the Southern District of New York, also is looking at other companies, say people briefed on the matter. In the G.M. investigation, Mr. Bharara is reviewing whether the lender sold questionable auto-loan investments to investors, they said. At the center of the investigation, the people said, is whether the lender fully disclosed to investors the credit worthiness of the borrowers whose loans made up the complex securities.”
http://nyti.ms/1APYlj0
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