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Justice Dept. Unit to Probe Mortgage-Backed Securities

By Kevin Johnson
USA Today

WASHINGTON – The U.S. government dispatched 55 prosecutors, FBI agents and analysts Friday to a new financial crimes enforcement unit focusing on home mortgage abuses that fueled the 2008 economic collapse.

For the first time since the crisis, federal investigators will be joined by state law enforcement officials as part of a working group that, New York Attorney General Eric Schneiderman said, would launch the “broadest, deepest investigation into what blew up the economy.”

The unit, first referenced earlier this week by President Obama in the State of the Union, is expected to plunge deeper into the causes of “massive market failures” that continue to harm homeowners, U.S. Attorney General Eric Holder said.

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