U.S. probing Golden West lending, sale: prosecutor

[Eugene]

Source: Reuters

U.S. probing Golden West lending, sale: prosecutor
Wed Nov 19, 2008 8:30pm EST

SAN FRANCISCO (Reuters) - The government is investigating
if homeowners were misled by California bank and mortgage
issuer Golden West Financial, which was acquired by Wachovia
Corp -- another possible victim.

U.S. attorney Joseph Russoniello on Wednesday said by
telephone that the Securities and Exchange Commission and
the Justice Department are "looking at the sale of Golden
West as well as Golden West's lending practices."

-snip-

Second, the government is asking what Golden West told
Wachovia as it was being acquired, including
"representations as to the quality of the portfolio."

Russoniello said the probe is one of a number undertaken by
a task force that since May has been looking into possibly
fraudulent practices in the housing market -- including
fraudulent applications by borrowers, as well as predatory
lending practices.

-snip-

Read more: http://www.reuters.com/article/topNews/idUSTRE4AJ0KL20081120