FBI Investigating Wall Street Fraud

I'm very interested in seeing how this story plays out!!!!

FBI Investigating Wall Street Fraud
Updated September 25th, 2008
http://loudobbs.tv.cnn.com/2008/09/25/f ... eet-fraud/

Freddie Mac, Fannie Mae, Lehman Brother and AIG under federal investigation for their role in creating the housing bubble, subprime mortgage crisis and current worldwide liquidity crisis. The FBI is investigating the companies’ deceptive and possibly fraudulent practices in originating, buying and trading bad loans. More than 20 other companies are under investigation as well.



Of course, that doesn’t mean these corrupt companies won’t receive hundred of billions of taxpayer dollars. Their monumental greed may be the subject of a criminal investigation, but in the government’s mind, they deserve to be rewarded for the irresponsibility with a big cash payout. After all, these mega-businesses have a long tradition of buying Washington influence with their own lobbying and campaign contributions.

More on the story from Times Online....

From The TimesSeptember 25, 2008
http://business.timesonline.co.uk/tol/b ... 821157.ece

FBI investigates Fannie Mae, Freddie Mac, AIG and Lehman Brothers
Tom Bawden in New York
The FBI is investigating Lehman Brothers and three other contributors to America’s financial crisis to determine whether they put pressure on ratings agencies to award top ratings to securities they issued.

Concerns that Fannie Mae, Freddie Mac, AIG or Lehman may have sought to encourage agencies to inflate their ratings — by offering higher fees or the promise of more work — form part of a broad inquiry by the bureau.

The agencies are widely regarded as having failed debtholders by attributing the top ratings to many securities that turned out to be extremely risky and have lost investors hundreds of billions of dollars.

The FBI, which is also investigating whether any of the four institutions deliberately misled investors about the true health of their assets, is expected to demand that they “hold all papers and e-mails under lock and keyâ€