FBI investigating, Fannie, Freddie, Lehman and AIG

CNN:

The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers and AIG - and their executives - as part of a broad look into possible mortgage fraud, sources with knowledge of the investigation told CNN Tuesday.

...

FBI spokesman Special Agent Richard Kelko had no comment on that information, but said that 26 firms were currently under investigation as part of the bureau's mortgage fraud inquiry.

Earlier this month, FBI director Robert Mueller told Congress that 1,400 individual real estate lenders, brokers and appraisers were now under investigation in addition to two dozen corporations.

"The FBI currently has 26 pending corporate fraud investigations involving subprime lenders," Kelko said. "As we have seen, this number can fluctuate over time, however we do not discuss which companies may or may not be the subject of an investigation."

Previously, CNN has reported that Countrywide is part of the investigation.

The sources said the probes of Fannie (FNM, Fortune 500), Freddie (FRE, Fortune 500), Lehman (LEHMQ) and AIG (AIG, Fortune 500) are believed to be in the early stages. One source said the government would be "remiss" if it didn't look into what happened at these companies because of the financial problems they are involved in and the actions of individuals running them.

...


I think some of these investigations involve borrowers who obtained mortgages through fraud. The US attorneys have prosecuted several cases in Houston Miami and other ares. The FBI is going to need several forensic accountants to run down what happened in Fannie and Freddie. Lehman probably has pretty good books and I suspect that AIG does too. Their problem was an inability to value assets because of the credit of the mortgaged backed securities which were probably purchased from Fannie and Freddie.

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