UPDATE 1-FBI's subprime crackdown may expand to more firms

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By James Vicini

WASHINGTON, Jan 30 (Reuters) - The FBI's investigation of 14 corporations in a crackdown on improper subprime lending could expand to other companies, but the complex probes may take some time before any charges are brought, a federal law enforcement official said on Wednesday.

"Like any white-collar crime investigation, these are very complicated, time-consuming investigations involving the examination of numerous records and interviews of various people. They don't happen in a short period of time," the FBI official said.

The official said criminal charges were not imminent in any of the investigations, and was unable to predict how long the investigations would take. A Justice Department spokesman declined comment when asked when charges might be announced.

FBI officials told a briefing on Tuesday the investigations covered corporations across the financial services industry, ranging from mortgage lenders and investment banks to developers and subprime lenders.

They said the investigations involved possible accounting fraud, insider trading and other violations of criminal law.

FBI spokesman Bill Carter said on Wednesday that the first investigations began early last year, that two more investigations recently were opened, and that more companies could be probed.

Democratic presidential candidate Sen. Hillary Clinton said she welcomed the move.

"For a long time families and community groups have been saying that the subprime mortgage industry was rife with abuses. A federal investigation of industry practices is long overdue," Clinton said in a statement.

At a Senate Judiciary Committee hearing, the ranking Republican, Sen. Arlen Specter, urged Attorney General Michael Mukasey to give the probe "a very, very high priority."

Mukasey did not respond.

Carter declined to identify any of the companies under investigation. He said the FBI was working closely with the Securities and Exchange Commission in some of the investigations.

FOCUS ON PRICING, INVESTORS

The SEC has opened about three dozen civil investigations into the subprime market collapse.

Targets of the SEC probe include Swiss bank UBS AG (UBSN.VX) and U.S investment banks Morgan Stanley (MS.N), Merrill Lynch MER.N, Bear Stearns BSC.N, as well as bond insurer MBIA (MBI.N).