The alleged investigation by the FBI into Countrywide Financial (NYSE: CFC) for possible securities fraud, is dubious at best.
Assuming it is true (which isn't for sure yet), it is a way for the government to pass blame to someone other than themselves.
With public scrutiny leaning toward the horrid monetary policy of the Federal Reserve, this looks like it could be a tactic to take the focus off of them and Ben Bernanke, and put it on the lenders.
Most Americans don't understand the consequences of printing money out of thin air and bringing into the marketplace. I don't think the Fed and others want them to really understand that, as it would bring to light the practices that bring booms and busts on a continuous basis over the years.
The securities fraud investigation that is going on, according to an unnamed source, is whether Countrywide properly represented what their real financial position was, and whether they overstated the quality of their loans in their security filings. They want to find out if there's evidence executives knew there would be more defaults than revealed.
What the FBI is also looking for, not only with Countrywide, but with a minimum of 14 other companies, is whether they have any accounting violations in connection with the subprime lending problems. At this time, the FBI hasn't identified who they're investigating.
Something smells rotten here, and it's probably going to get worse, as politicians jockey for position in an election year.
The scrutiny needs to stay focused on the Federal Reserve and its monetary policies, not on businesses that lend that same money. What a waste of resources and time in order to take the focus off the real problem.
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