Source: FBI investigating Indymac for fraud

[Gunny]

From Kelli Arena
CNN Justice Department correspondent

WASHINGTON (CNN) -- The FBI is investigating Indymac Bancorp for fraud, a source tells CNN.

The California-based bank was taken over by federal regulators last week.

Indymac's collapse was the second-largest bank failure in U.S. history.

A source said the federal government is looking into whether the bank engaged in fraud when it made home loans to high-risk borrowers.

The source said the investigation is focused primarily on the company, not individuals.

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