FBI investigates fraud at Fannie, Freddie, Lehman
The Federal Bureau of Investigation (FBI) is investigating mortgage finance giants Fannie Mae and Freddie Mac for possible corporate fraud. Officials also confirmed that Lehman Brothers and insurer American International Group are under investigation as well. The financial downfall of all four of these institutions are seen as the major trigger of recent economical turmoil and the subsequent $700 billion bailout plan currently being pushed by the Bush administration. Earlier this summer, federal prosecutors charged two portfolio managers of the now defunct Bear Stearns with conspiracy and securities fraud, following an FBI investigation into the company’s business practices.
The FBI said that in addition to the 26 major corporate cases, there were open investigations into about 1,400 smaller companies and individuals whom the agency suspects of mortgage fraud.
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