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Thornberg 'to be probed by SEC'

The recent near-collapse of US mortgage lender Thornburg is to be the subject of a forthcoming investigation from the Securities and Exchange Commission (SEC).

Thornburg received notice of the probe from the regulator - and says that it will fully cooperate, Reuters reports.

The lender is also currently subject to a review from the New York Stock Exchange over potential irregularities in trading in its stocks.

While the SEC refused to comment, it is understood that its investigation will concern alleged demands for more collateral exerted by Thornberg from its borrowers in recent months.

The firm's dealings in mortgage-backed securities - the complex financial instruments whose collapse in value last summer was a major cause of the global credit crunch - is also to be put under the spotlight.

Thornburg has also been affected financially by the credit crunch due to the high-value home loans it specialized in becoming less popular among consumers due to the general economic downturn.

Last month, the firm was saved from bankruptcy due to a cash injection of $1.35 billion from investors including MatlinPatterson Global Advisers.