DOJ Subpoenas GE in Sub-Prime Probe

Feb 29, 2016

General Electric (GE) has quietly announced that it is the subject of a U.S. Department of Justice (DOJ) probe regarding the sale of sub-prime mortgages in the period leading up to the 2008 crash.

According to a Reuters report, GE acknowledged the DOJ probe in a filing with the U.S. Securities and Exchange Commission—neither GE nor the DOJ publicly announced the investigation. The probe, which began last month with the issuance of subpoenas to GE’s now-defunct WMC Mortgage Corp. and to GE Capital, focuses on subprime mortgages that were originated between January 1, 2005 and December 31, 2007. WMC is also being investigated for possible violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

"We will cooperate with the Justice Department's investigation, which is at an early stage," GE said in its filing.

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Phil Hall

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Feb 29, 2016

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