US regulators cracking down on financial fraud

The US Securities and Exchange Commission told lawmakers at a House Financial Services Committee hearing that it has several investigations into subprime lenders that raise issues regarding possible insider trading,particularly before the announcement of negative news regarding the lender. It also said the SEC is probing the timing and amount of investment banks massive writedowns of asset values.

We are also in the process at the commission of considering what additional legislative changes may be needed to help our enforcement and examinations personnel combat fraud and wrongdoing in the market place, SEC Commissioner Elisse Walter said.

Democratic Representative Barney Frank,chairman of the Financial Services Committee,said Congress needs to know what resources are necessary to go after those who helped fuel the economic crisis.