Federal Deposit Insurance Corporation

Commentary: A Warning Shot to Subprime 

Setting an example: Some industry insiders have suggested to us that the FDIC’s proposed cease and desist order against Fremont General was a “warning shot across the bow” to other FDIC-insured depositories engaged in originating similar subprime products… …whether that means that the FDIC is likely to take similar action against other lenders it regulates remains to be seen, but most we’ve spoken to seem to think that won’t be the case, if only because of the sheer size of some of the other FDIC-insured depositories (think Wells Fargo, WaMu, Wachovia).