FBI Probe Targets 26 Companies

An FBI probe into unsavory lending practices now includes giants AIG, Fannie and Freddie, as well as Lehman.

By: Ryan Hartley The FBI probe into unlawful and potentially fraudulent lending practices has been expanded. Fannie Mae, Freddie Mac, AIG, and Lehman Brothers have all found themselves under federal investigations being conducted by the Justice Department. The AP reported the investigatory expansion over the wires beginning Tuesday. Citing two anonymous law enforcement officials, AP said the FBI is now looking at 26 companies to determine whether any participated in accounting fraud, insider trading, or failing to disclose the true value of mortgage-related assets. SEC charman Christopher Cox testified before a Senate Banking Committee hearing regarding the President's plans to borrow as much as $700 billion in order to buy mortgage assets. The SEC investigations are being focused on the sub-prime lenders, which have proven to be at the center of the meltown. AG Cuomo began his own investigations into many of the companies involved in "mortgage packaging" last year. His own efforts have been widely publicized and reported. This Justice Department investigation marks a major change from the previously-held practices. In years prior, the Justice Department has focused mainly on targeting borrowers who have attempted to defraud mortgages companies by inflating prices.