Financial Services

FBI May Probe Firms That Caused Bailout

 

The FBI is investigating Fannie Mae(FNM), Freddie Mac(FRE), American International Group(AIG) and Lehman Brothers, the four financial firms whose collapse led to a $700 billion bailout plan by the U.S. government, according to published reports.

Two law enforcement officials said the FBI is looking at potential fraud by the companies, reports the Associated Press.

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

Lehman and AIG declined to comment, the Wall Street Journal reported. A spokeswoman for the Federal Housing Finance Agency, which regulates Fannie and Freddie and has both companies in conservatorship, also declined to comment.

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This article was written by a staff member of TheStreet.com.

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