Tuesday, September 23, 2008


The FBI is now investigating AIG, Lehman Bros, Freddie and Fannie for fraud.

WASHINGTON — The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration, The Associated Press has learned.

Two law enforcement officials said Tuesday the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, and insurer American International Group Inc. Additionally, a senior law enforcement official said Lehman Brothers Holdings Inc. also is under investigation.

The inquiries will focus on the financial institutions and the individuals that ran them, the senior law enforcement official said.

It's about time. Somebody needs to burn for this.


JTapp said...

I think this might be much ado about nothing. I doubt it's anything like cooking the books at Enron.
In the end, the FBI might find that the firm took on too much risk... not exactly illegal, though.

If you're looking for someone to blame, try these guys.

The linked article will be used in some computer science classes here tomorrow.

Greatmoose said...

Yep, caught whiff of this a couple days ago, it's definitely something to be concerned about. So, what do you think is going to happen to Wall Street as a whole? Is it time to bail on stocks, or stick it out?

JTapp said...

Stick it out. Unless you have stocks in major investment banks. (Unless the bailout plan includes the provision for the Treasury to own equity [ie: stock] in the firms it helps. In which case, your stock will likely go up).