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Question of the Week: Mortgagegate Makes Investors Wary of U.S. Banking Industry

A potentially crippling crisis is flashing through the banking industry and threatening to derail the already struggling housing market and U.S. economic recovery. But Gilani said the headlines aren't telling the full story. Dubbed "Mortgagegate" - a nod to the earlier scandal-ridden crisis touched off by Watergate - this latest crisis involves such big lenders as Bank of America Corp. (NYSE: BAC ) , Citigroup Inc. (NYSE: C ) and GMAC LLC (NYSE: GMA ), which are alleged to have conducted negligent foreclosure practices.  Money Morning Contributing Editor Shah Gilani warned about the allegedly fraudulent business practices employed by lenders and their hired "robo-signers" that led to thousands of questionably reviewed foreclosure documents.
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