GM Financial receives subpoena over subprime auto loans

|By:, SA News Editor

U.S. authorities are investigating General Motors' (NYSE:GM) auto financing arm over subprime auto loans it made and securitized since 2007.

Financial services firms have paid billions of dollars to settle investigations under FIRREA (Financial Institutions Reform, Recovery and Enforcement Act) which probed mortgages pooled into securities in the run-up to the financial crisis, however, this new subpoena suggests that investigators are also looking at the securitization of subprime auto loans.

GM Financial says it was served the subpoena from the DOJ on July 28.