Sources: FBI investigating possible fraud by Fannie, Freddie, Lehman, AIG and their executives

[maddezmom]

Source: AP

WASHINGTON - The FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration.


Two law enforcement officials said the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, Lehman Brothers Holdings Inc., and insurer American International Group Inc.


A senior law enforcement official says the inquiries, still in preliminary stages, will focus on the financial institutions and the individuals that ran them.



Read more: http://www.startribune.com/nation/29644439.html

---

Democrats and Republicans alike sceptical of Bush bailout plan


"After reading this proposal, I can only conclude that it is not just our economy that is at risk," Dodd told the treasury secretary, "but our constitution as well."

more:http://www.guardian.co.uk/business/2008/sep/23/wallstreet.congress

[seemslikeadream]

1. Bring in the dogs

[bvar22]

48. Bring in the water boards and electrodes!

!

[WhiteTara]

52. they'll cry

[ReadTomPaine]

2. Good to hear.. nothing will happen under Mukasey but at least the investigations will have begun. nt

[dchill]

7. Hey, a LOT of things have happened "under Mukasey"...

it's just that none of them were good. :shrug:

[CountAllVotes]

3. time to bring in the handcuffs

and lock these criminals up! They are a THREAT to the American People!

:kick:

[EFerrari]

4. Right. The Bush Justice Department is going to investigate the Bush administration.

:shrug:

[CountAllVotes]

5. the companies named have received close to $3 billion in bailouts

and they want the American people to bail out more of these crooks?

Lehman Brothers should be deleted from the list!

Criminals.

The next admin. can proceed with the investigations. It is far from being a done and gone issue IMO.

:kick:

[stillcool]

6. good thing Elliot Spitzer isn't around.

[fascisthunter]

10. no shit.... what a joke

[katty]

8. they have had it out for the bushies since 9/11--payback time

[kestrel91316]

9. Hey, let's all commit financial fraud on a grand scale and then let the

taxpayers bail us out. Sounds like a GREAT gig.

[debbierlus]

13. That is why they included the provision that no court could review or do anything

And, the no over-site....

None.

That would explain it.

[fascisthunter]

11. great... so the criminals will get a "White Washing"

from a criminal AG

[debbierlus]

12. Oh Ho! I think they pushed it one step to far....

Only took about 700 billion steps...

Guess there is a limit, after all.

Who'ad Thunk?

[seafan]

14. Anybody knocked on Jeb Bush's door yet? Our patience is wearing thin.

Sources: FBI investigating possible fraud by Fannie, Freddie, Lehman, AIG and their executives, September 23, 2008

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.

The law enforcement officials spoke on condition of anonymity because the investigations are ongoing and are in the very early stages.

.....

Forbes: Jeb Bush involvement with Lehman raises questions in Florida investment fund debacle, December 1, 2007

[crossroads]

20. Jeb Bush? Enuf said!

No wonder! That name alone speaks volumes...

CR

[bluesmail]

15. This could tie in with UBS and their investigation into fraud

Would explain the urgency on the vote. I wonder what the whistle blower said on closed circuit TV when he testified? This is the hairiest mystery I've ever read. More twists and turns.

[KoKo]

17. Do you have a link or reference to the UBS whistle blower?

Must have missed it here. Sounds interesting... and coincidental.

[maddezmom]

19. here are a few links

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3648922

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3330844

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3436425&mesg_id=3436492

[bluesmail]

21. Thanks for posting these.

:thumbsup:

[maddezmom]

23. you are very welcome

:hi:

[Dover]

16. So will this put the bailout on hold?

Or is this just one more investigation that's a bridge to nowhere.

[Tandalayo_Scheisskopf]

18. AHA!!!

All of those CIA and Blackwater interrogators? Just the men to do the questioning of these CEO's and other executives.

I mean, after all, it's not torture, right? Right? RIGHT??!!

[MuseRider]

22. Not unless it

causes organ failure right?

Wooo Hooo they get to try out the things they voted in when they voted for lil Bushie.

Karma.

[ryanmuegge]

24. The whole financial system is based on fraud.

[Hestia]

25. Yahoo has a bit more

...
Just last week, FBI Director Robert Mueller put the number of large financial firms under investigation at 24. He did not name any of the companies under investigation but said the FBI also was looking at whether any of them have misrepresented their assets.

Over the past year as the housing market cratered, the FBI has opened a wide-ranging probe of companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors. Mueller has previously said the FBI's hunt for culprits in the nation's subprime mortgage crisis focused on accounting fraud, insider trading, and failure to disclose the value of mortgage-related securities and other investments.
...
Additionally, the FBI is investigating failed bank IndyMac Bancorp Inc. for possible fraud. Countrywide Financial Corp., formerly the nation's largest mortgage lender and now owned by Bank of America Corp., is also under scrutiny.

http://news.yahoo.com/story//ap/20080924/ap_on_go_ca_st_pe/financial_meltdown_investigation
---

This being true - why can't we wait until the investigation is over before we start crapping out $700 billion?

[maddezmom]

26. ABC had a bit more as well

According to FBI and Justice Department officials, the FBI investigation is multifaceted and the net is much deeper than the major firms officials confirmed today.

After the collapse of the subprime markets in 2007, the FBI set up a task force to examine how brokers set up and sold mortgage and asset-based securities.

The bureau cast a wide net on firms that had dealt in collateral debt obligations (CDOs), or debt pools traded as securities.

more:http://www.abcnews.go.com/TheLaw/story?id=5871255

[bemildred]

27. Well, it is fatuous to suggest that throwing more money at the problem will fix it.

I mean that is how we got here, giving these fuckers carte blanche and all the "liquidity" they wanted.

[thecrow]

42. Imagine them hearing that phrase from us for once....

What was it again? Let's all say it together:

<<We can't comment on an ongoing investigation.>>

Sorry, no bailout until the investigation is over.
Let's hammer that on the phone to Congress today.

[MichiganVote]

28. About fucking time

[0rganism]

29. Yes, the FBI must move quickly so Bush has ample time to issue pardons

Ain't no other reason for Mukasey to allow it. Gotta get 'er done now.

[bobthedrummer]

30. Guardian AP article by Lara Jakes Jordan: "FBI investigating companies at heart of meltdown"

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.

http://www.guardian.co.uk/world/feedarticle/7821718

Fair use cited.

[Amonester]

31. The spectre of Enron all over...

On a much Wider scale.

go get 'em

[YvonneCa]

54. Yep. CNN just did an interview about this and...

...connected to Enron. My earlier post:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4088145&mesg_id=4088145

[OakCliffDem]

32. K & R

[azurnoir]

33. FBI investigating companies at heart of meltdown

Source: yahoo news

FBI investigating companies at heart of meltdown

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.

Over the past year as the housing market cratered, the FBI has opened a wide-ranging probe of companies across the financial services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors. Mueller has previously said the FBI's hunt for culprits in the nation's subprime mortgage crisis focused on accounting fraud, insider trading, and failure to disclose the value of mortgage-related securities and other investments.

Additionally, the FBI is investigating failed bank IndyMac Bancorp Inc. for possible fraud. Countrywide Financial Corp., formerly the nation's largest mortgage lender and now owned by Bank of America Corp., is also under scrutiny.


Read more: http://news.yahoo.com/s/ap/financial_meltdown_investigation

---

My first thought was that because Fannie Mae has "New Deal" origins it was politically motivated, perhaps it is that they need to appear to be doing something other than handing out our money

[tabatha]

34. Do you know who gets the FBI to investigate?

Is it Patrick Fitzgerald?

[laststeamtrain]

35. Should they get the 'bail out' money before or after the FBI investigation is done? n/t

[trthnd4jstc]

36. Lehman Brothers took $8 Billion out a week before declaring bankruptcy. n/t

[sce56]

37. Refference please!

We need to have the light shine on all of this.

[trthnd4jstc]

38. Here are 2 link. I heard this on the Diane Rheam Show, the first one, this morning,

http://www.dailykos.com/storyonly/2008/9/22/9224/75316/641/601417

And:

http://www.portfolio.com/views/blogs/market-movers/2008/09/22/did-lehman-brothers-steal-8-billion?tid=true

I have to get some sleep. Good Luck.

[sce56]

39. Thanks n/t

[Prospero1]

40. Don't need much investigation

There's a fundamental concept in finance and investment called "diversification". No matter how good an investment is, you don't put too much into it, because it could always fail. The executives at these institutions have a fiduciary duty to act prudently and exercise due diligence in investing. They have obviously failed to do so and should be held personally liable for this malfeasance. What's to investigate?

[Amonester]

41. must read (and welcome to DU) :-)

links at:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3507100&mesg_id=3507232

[Prospero1]

51. I realize there should be an in-depth investigation....

The point I was making is that OBVIOUS crimes have been committed (in addition to all the underlying dirt your links mention) and the prosecution need not wait to "investigate". When operating a major financial institution it is illegal to "put all the eggs in one basket". The fact that they need bailing out demonstrates that this is exactly what these idiots did. Case closed.

[Geeky Math Genius]

45. Where will the buck stop?

Somebody please explain to me why President Bush and Mr.
Bernanke aren't assuming responsibility for this disaster. And
why aren't concerned citizens holding them accountable. If the
government had been acting more responsibly in recent years,
they would have stopped the practices that led to this
collapse.

Their solution now is to throw good money after bad. The fat
cows will get fatter. This country really needs a change.

[KoKo]

43. kick

[thecrow]

44. Read this and see if you think something fishy is going on

http://www.financialsense.com/Market/kirby/2008/0922.ht...

Read it and see what you think

[mhatrw]

46. Nothing but hopeful misdirection, IMHO. n/t

[guitar man]

47. If found guilty

If they find them guilty, don't sentance them to prison. Seize their assets and donate them to charity, missions and kitchens that feed the homeless etc. Then sentance them to work at those same places in the kitchen for minimum wage. Let them get a good look at what they have chose to ignore for so long while they are there.

And,BTW, as soon as they are dropped off at their assigned place, with their tracking ankle bracelets on, let them know they are on their own, they won't have any money until payday and they need to find a place where thay can live on minimum wage.

Lastly, do a good deed for them and kindly direct them to the nearest thrift store or army surplus where they can get a second hand pair of boots. you know, so they can start pulling on their bootstraps. ;)

[The Backlash Cometh]

49. Fraud? You think?

They couldn't suck us dry with Social Security, so they're going to plan B before those social-programs loving Democrats use the money for those in need, and not those who live in Stony Brook addresses.

[EFerrari]

50. If the BUSH JUSTICE DEPARTMENT is doing this, it's political

and aimed to hurt Democrats. Caution, Will Robinson.

[bobthedrummer]

53. "A DU collaborative investigation: Thelma Colbert, Shannon Ross and other deaths at DoJ"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x847120

[Uncle Joe]

55. Kicked and must read.

Thanks for the thread, maddezmom.:thumbsup:

[whistle]

56. So far these entities have grabbed about $350 billion with Hank Paulson's help

...and now the U.S. Congress wants to allow Paulson to steal $700 billion more without any accountability or consequences. We must tell Congress "Hell No!"

[Union Thug]

57. Ready the guillotines n/t

[WhiteTara]

58. make tkhem forfeit the money!

We could come close to settling the problem if we just took the money that they all stole.

[OKthatsIT]

59. SURE THEY ARE...But don't hold your breath

...they're investigating in order to tell America, "They're all clean."

[CounterPropagandist]

60. Here's what is happening

Listen to this exposse of the corruption in AIG and Offshore banks

http://www.wfmu.org/listen.ram?show=28715&archive=45455