Wall Street Criminal Probe Widens
As news of Congress' failure to pass a sweeping $700 billion bailout package for Wall Street sent stocks tumbling, investigators continued today to pursue potential criminal cases against firms and bankers accused of contributing to the market collapse.
Federal prosecutors on Friday issued subpoenas for mortgage-finance giants Fannie Mae and Freddie Mac to produce documents dating back to January 2007. Federal prosecutors with the Southern District of New York and officials with the Securities and Exchange Commission would not say what they are seeking.
Bloomberg reported that reviews of the two companies' books in the weeks before their Sept. 7 takeover by the federal government found that they were using accounting methods that obscured the "low quality" of capital reserves.
The FBI has already begun an investigation into the subprime mortgage collapse. Investigators are looking at 26 companies, including Fannie and Freddie.
In separate statements, both companies said they would cooperate with the investigations, The Post's Zachary Goldfarb reported today.
By Derek Kravitz |
September 29, 2008; 3:08 PM ET
Previous: Stevens Judge 'Livid' After Witness Sent Home | Next: Gas Firm Pleads Guilty To Releasing Pollutants in Ocean
Please email us to report offensive comments.
Posted by: john long | September 29, 2008 4:15 PM
Posted by: JayKay2 | September 29, 2008 9:44 PM
Posted by: Chris | September 30, 2008 5:08 PM
Posted by: M. J. Bee | October 1, 2008 6:31 PM