The Justice Department has subpoenaed records concerning subprime mortgages from General Electric Co.’s financial services business, the company said in a securities filing, the latest indication of the long shadow the subprime boom has cast over lenders.
GE disclosed in its annual report, filed Friday, that its lending unit, GE Capital, and a former subsidiary that made subprime loans, WMC, received the subpoenas in January.
The records were sought in an industrywide Justice Department investigation of subprime mortgages, which is seeking to determine if federal laws were broken in the “origination, purchase or sale of residential mortgages” from 2005 through 2007, the company said. GE said it is cooperating with the investigation.
The Justice Department didn’t immediately respond to a call for comment.
justiceleague00
Justice League 