Feds Start Criminal Probe of Bank Foreclosure Mess

Banks have begun making moves to get foreclosures moving again, even as federal investigators begin a criminal investigation into the whole sorry affair, reports the Washington Post. The task force will look at whether banks broke wire and mail fraud laws or misled federal housing agencies by submitting flawed paperwork to take people's homes.

"We remain committed to holding accountable any bank that has violated the law," said White House press chief Robert Gibbs. He added that the White House supports a separate inquiry under way by state attorneys general. If the feds find evidence of wrongdoing, they could go after lenders and mortgage companies on both criminal and civil charges, insiders tell the Post. (More banking industry stories.)