FBI launches Wall Street investigation

Source: Exec Digital USA

Date :9/24/2008 6:17:59 AM

The FBI is believed to be investigating Fannie Mae and Lehman Brothers executives in an attempt to pin down the root of the financial troubles currently gripping Wall Street.

It is trying to determine whether executives at four American financial institutions, believed to have triggered the US$700 billion proposed bail-out of Wall Street, lied to shareholders.

The investigation comes as Henry Paulson’s plans for a taxpayer bailout hits strong criticism, with many Americans seemingly unwilling to pay for Wall Street’s mistakes.

Yesterday, the US Treasury Secretary faced a grilling from lawmakers in Washington over proposals he says would rescue the American banking system from ‘meltdown’.

The FBI has reportedly launched an inquiry into Fannie Mae and Freddie Mac, Lehman Brothers, and AIG; although a formal spokesman for the FBI last night told The Times: “We don't name companies”.