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.
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