Federal investigators want to know whether executives at mortgage finance giants Fannie Mae and Freddie Mac misled investors and the public about risky mortgages in the lead-up to the 2008 financial crisis.
High-ranking sources with the Department of Justice told The Daily that the FBI and other federal authorities have launched investigations into the matter. The development comes as the Securities and Exchange Commission filed suit yesterday against six former top executives at Fannie and Freddie.
The suits represent the most aggressive moves to date by federal regulators against financial executives at the heart of the housing market meltdown.
The civil suits claim execs at Fannie and Freddie — both now under federal control and propped up by $169 billion in taxpayer money — deliberately downplayed the danger and the volume of subprime mortgage holdings in the years leading up to the credit crisis.
High-ranking sources with the Department of Justice told The Daily that the FBI and other federal authorities have launched investigations into the matter. The development comes as the Securities and Exchange Commission filed suit yesterday against six former top executives at Fannie and Freddie.
The suits represent the most aggressive moves to date by federal regulators against financial executives at the heart of the housing market meltdown.
The civil suits claim execs at Fannie and Freddie — both now under federal control and propped up by $169 billion in taxpayer money — deliberately downplayed the danger and the volume of subprime mortgage holdings in the years leading up to the credit crisis.
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