Ohio Attorney General Buck'eyeing' The Bulls
According to this report from Reuters, Ohio's Attorney General Marc Dann is investigating whether Wall Street investment banks were involved with fraudulent subprime lending. Deceptive lending practices such as falsifying income on loan applications and providing loans to people that they were not suited for has attributed to the rash of foreclosures in Ohio.
According to the latest release from RealtyTrac, Ohio (along with California and Florida) documented the largest foreclosure totals in the nation in April 2007.
Ohio’s foreclosure activity surged in April, up 39 percent from the previous month and up 135 percent from April 2006, pushing the state’s foreclosure total to third largest in the nation. The state reported 11,431 foreclosure filings during the month, a foreclosure rate of one foreclosure filing for every 418 households — 1.9 times the national average.
According to Dann, it is possible his office may bring RICO charges against the investment banks if his investigation shows that they funded lenders who provided high-cost risky mortgages to people with weak credit.
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