January 14th, 2010
12:45 PM ET
13 years ago

Holder to examine DOJ response to FBI 2004 fraud warning

Washington (CNN) - Attorney General Eric Holder agreed Thursday to find out and promptly report what actions, if any, were taken by the Justice Department after a 2004 FBI warning of a looming financial crisis.

Under pressure from the Financial Crisis Inquiry Commission, Holder promised to advise the panel by the end of January whether the government heeded the warning from an assistant FBI director that the growing mortgage fraud caseload could signal a problem with potentially wide economic repercussions.

The bipartisan commission appointed by Congress is trying to determine the precise causes of the nation's financial crisis, and believes mortgage lending practices were instrumental in the economy's near-meltdown.

Holder announced the number of pending mortgage fraud investigations has now grown to more than 2,800. FBI Director Robert Mueller said last September the number of pending cases had increased to 2,600. That was up from 436 mortgage fraud cases in fiscal year 2003, before such fraud cases started to balloon.

Holder on Thursday said an expected increase of 50 FBI agents and 150 lawyers will help bolster investigations into major mortgage fraud and corporate financial fraud.

Holder and other government officials testified Thursday in the second day of public hearings by the commission on Capitol Hill.

Filed under: Eric Holder • FBI • Justice Department
soundoff (9 Responses)
  1. Robin

    This is not one you can pin on GWB. He warned Congress 17 times.

    But, Dodd and Frank were getting their pockets lined and stated the "program is not broken".

    January 14, 2010 01:58 pm at 1:58 pm |
  2. obama the liar

    ATTN: ERIC...here is a clue Barney, Dodd and Schumer. Please keep it secret.

    January 14, 2010 02:08 pm at 2:08 pm |
  3. david

    of course these white collar criminals will not go to jail, even though their crime did damage to more people than any bank robber with a gun.

    It's a shame that society is made up of so many dumb people with a skewed sense of right and wrong.

    January 14, 2010 02:17 pm at 2:17 pm |
  4. david

    ERYONE!!!!.... do society a favor. If you get on a jury with one of these scummy white collar criminals INSIST on the maximum penalty and quilt on all appropriate charges.

    January 14, 2010 02:20 pm at 2:20 pm |
  5. Bob in Pa

    The Congress was prohibited on taking up mortgage issues because of Representatives like Barney Frank and Senators Chris Dodd. Both of whom should have already been indicted and be on their way to jail.

    January 14, 2010 02:30 pm at 2:30 pm |
  6. Dutch the Great

    People need to be held accountable and go to jail behind this mess. Fraud is fraud. A crime by any other name is still a crime.

    January 14, 2010 02:38 pm at 2:38 pm |
  7. NotFooledTX

    2004? The Bush "Justice" Department. It was chocked full of Liberty U grads – if it didn't involve Jesus or phony voting rights issues, I doubt they were interested or reactive.

    January 14, 2010 02:48 pm at 2:48 pm |
  8. MikeH

    The Bush/Cheney cabal needs to be indicted and prosecuted for perptrating economic crimes against America.

    Cheney deserves to be "extraordinarily renditioned" to Guantanamo for some 'enhanced interrogation' until he confesses his crimes atgainst humanity.

    January 14, 2010 02:49 pm at 2:49 pm |
  9. Orange Curtain, CA

    Consumers were lied to and misled. Make them pay for their shiesty bait and switch deceptive gimmicks.

    January 14, 2010 02:59 pm at 2:59 pm |