asking Al Gore to run in 2008!
Let the investigations begin
Posted September 24th, 2008 by Wayne in WA State
The FBI is investigating four Wall Street institutions at the heart of the financial crisis over their role in the sub-prime mortgage meltdown, it emerged today.
Reports said preliminary investigations into potential corporate fraud at the US mortgage finance giants Fannie Mae and Freddie Mac, the insurer American International Group and the investment bank Lehman Brothers had been opened.
They are among 26 companies being scrutinised by the FBI. Freddie Mac, Fannie Mae and AIG were bailed out by the government in the last fortnight, while Lehman Brothers filed for bankruptcy.
Senior executives at the companies are also believed to be in the FBI's sights, while the securities and exchange commission is also reportedly assessing possible civil fraud claims against the four firms.
"The FBI continues to investigate a number of companies for sub-prime lending practices, but the department brings criminal prosecutions based solely on the facts and the law," Brian Roehrkasse, a Justice Department spokesman, said.
"Where we find evidence of criminal wrongdoing, we will prosecute."
Several California institutions, including IndyMac Bank of Pasadena, which collapsed in July at a cost of $8.9bn (£4.7bn), are reported to be under investigation.
Countrywide, formerly the largest mortgage lender in the US and now owned by Bank of America, is also under scrutiny.
The investigations come as Congress considers a $700bn bailout package for the financial industry.
The Bush administration's plan would allow the Treasury to buy toxic bad debts from troubled financial institutions.
Congressmen yesterday demanded safeguards, additional details and more time to scrutinise the way in which the Treasury intends to spend the money.
In the past two weeks, the government has taken over Fannie Mae and Freddie Mac to prevent their collapse.
Last week, the Federal Reserve provided an emergency $85bn loan to AIG to save it from bankruptcy, but refused to bail out Lehman Brothers.
Eight months ago, the FBI began an investigation into the sub-prime mortgage market, in which loans were given to people who were not in a position to repay them.
This prompted the credit crunch as bad debts were bundled together with higher quality assets and sold on by banks.
The FBI is known to have demanded information from Goldman Sachs, Morgan Stanley and - prior to its collapse - Bear Stearns.
In June, two Bear Stearns executives were arrested over charges that they misled investors as the subprime market began to disintegrate.
http://www.guardian.co.uk/business/2008/sep/24/wallstreet.freddiemacandf...
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Be part of the Draft Gore '08 campaign!
It amazes me.....
For years I have watched wall street and these mega corporations pay huge salaries and offer gazillion dollar bonuses. It all seemed somehow corrupt but all I kept hearing about was how the "free" market was promoting the economy and all that money trickled down to form the basis of our wonderful Country. I kept watching, kept thinking it appeared corrupt, but kept hearing about it's virtues. I thought maybe I was closed minded-maybe just angry that I was not one of those gazillionaires--maybe I was crazy and my perception was totally skewed. Then suddenly, almost overnight, the whole thing crumbles and our entire country stands on the brink of disaster. Lo and behold they are talking about CORRUPTION! Lesson of the story: Never underestimate the truth in your gut! Now all we need are bright people with the guts to truly do what is in the best interest of our country and not the best interests of their pockets or political careers,
Democrats Supporting breaking the Federal Gov.
They made minor adjustments to a corrupt bill.
The corruption in both parties .
Democrats.senate.gov.
Democrats Working To Strengthen Economy
September 17, 2008 --As the financial markets crumble, Democrats will continue to emphasize the need for strong leadership and decisive action while out-of-touch Bush-McCain Republicans seek more of the same failed policies that got us into this mess in the first place. Senate Majority Leader Harry Reid and Democratic Senators Patty Murray, Byron Dorgan and Robert Menendez held a press conference this week to discuss eight years of failed Bush-McCain economic policies that have hurt Americans on both Wall Street and Main Street. The Senators discussed Democrats' efforts to address the meltdown in the financial sector and to urgently pass another economic recovery package that strengthens the middle class.
"Democrats believe that to turn this economy around we must not only address the broader, underlying structural issues in the financial markets, but also strengthen the middle class through another economic recovery package," said Senator Reid adding, "Democrats are working to lower energy costs, invest in infrastructure that creates hundreds of thousands of good-paying American jobs, and prevent cuts in critical services for millions of Americans. Wouldn't it be something if just once this Administration would come to my office with the same urgency to help the middle class as they do for Wall Street?" Senator Reid and his colleagues urge President Bush, Senator McCain and other Republicans to work with Democrats in the immediate days ahead to enact an economic recovery package. Read more.
Click here to watch the video.
Here is a link to my blog called, "The Politico Insider."
URL Changed.
http://thepoliticoinsider.blogspot.com/