Perhaps this is why Paulson wants to hurry things along. They're covering up something or are looking for ways to keep their wealth. Something's not right and it seems like the tip of the iceberg. The leaders of these companies who kept passing along bad mortgages need to start a homeowner fund with their personal money. They need to lose everything. This situation is an outrage. I don't know how else to say it.
Sept. 24 (Bloomberg) -- The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc. and American International Group Inc. in its probe of the collapse of the subprime-mortgage market, according to a senior law-enforcement official.
Those companies are among 26 being reviewed by the Federal Bureau of Investigation for possible accounting misstatements, said the official, who asked to remain unidentified. The investigations are preliminary, the official said late yesterday.
The FBI has come under pressure to hold companies responsible as the loan crisis rocked Wall Street and led to the biggest housing slump since the Depression. Financial companies worldwide have reported more than $500 billion in losses and writedowns stemming from the subprime collapse.
Housing lenders Freddie Mac and Fannie Mae, as well as insurer AIG, were all taken over by the government earlier this month. Lehman filed for bankruptcy. The crisis has led the Bush administration to ask Congress to approve a $700 billion bailout for the financial industry.
CNN has a timeline.