FBI Investigating Companies At Heart Of Meltdown

September 24, 2008

As the house of cards built by corporate greed and fraud is collapsing, the FBI are investigating the mortgage giants Fannie and Freddie and insurance behemoth AIG — companies that were recently bailed out by the US government with American taxpayers’ money:

WASHINGTON (AP) ― 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.


Read more here.


The Smirking Chimp: Visualize the Dow at 6,000

July 26, 2008

“The banking system is broke, busted, penniless; and yet the Fed and the G-7 allow this comedy to persist like nothing is wrong. When will the American people wake up?” Asks Mike Whitney in this post.   When indeed?

Pay attention to this excerpt:

It’s funny; while Bush was hosting his faux-press conference, live-footage was appearing on other media of fully-armed LA policemen being dispatched to the various Indymac locations. Their task was to remind the gathering of elderly “blue-hair” women and middle-aged white guys in Tommy Bahama T-shirts that any public display of outrage would be swiftly met with Rodney King-style justice. Hmmm. So now withdrawing one’s savings from the bank is not only riskier; it’s tantamount to committing a felony. My, how America has changed.

* Read this post by Mike Whitney in its entirety on the Smirking Chimp here.

Read more of Mike Whitney’s posts on his blog.

Read more news and commentary on The Smirking Chimp.