FBI is investigating four major U.S. financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration.

Two law enforcement officials said the FBI is looking at potential fraud by mortgage finance giants Fannie Mae and Freddie Mac, Lehman Brothers Holdings Inc., and insurer American International Group Inc.

http://michellemalkin.com/2008/09/23/fbi-investigating-fraud-at-fanniefreddielehmanaig/

In the past two weeks, the government has taken over Fannie Mae and Freddie Mac, the country’s two biggest mortgage companies, with a bailout plan that could require the Treasury Department to put up as much as $100 billion for each of them over time if needed to keep them afloat as mortgage losses mount.

Last week, the Federal Reserve provided an emergency $85 billion loan to AIG, which teetered on the brink of bankruptcy. Lehman Brothers was forced to file for bankruptcy after attempts to engineer a private rescue fell apart. All the companies were laid low from bad bets on complex mortgage-related securities.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke made the joint decision last week that the only way to stop the carnage was to deal with the root cause of all the troubles, billions of dollars of bad mortgage debt sitting on the books of major financial companies. This debt has triggered the worst credit crisis in decades, causing credit markets to essentially freeze up despite the fact that the Fed joined with major central banks around the world to pump billions of dollars of reserves into the financial system.

Additionally, the FBI is investigating failed bank IndyMac Bancorp Inc. for possible fraud. Countrywide Financial Corp., formerly the nation’s largest mortgage lender and now owned by Bank of America Corp., is also under scrutiny.

http://www.foxnews.com/story/0,2933,426783,00.html

Better late than never!  Preliminary stage investigation focusing on the financial institutions and the individuals that ran them.  Maybe the Senators who received contributions from these firms should throw that money in with the taxpayers’ bailout cash as well!

We all know that this happened because the affirmative action card for mortgages played out.   The politically correct deemed everyone equal and deserving of those loans.   Equal opportunity despite their inability to pay it back!

OMG, should not they have profiled these people  and verified whether they had a job or could make enough money to pay it back?  Haven’t we heard this before?   How dare you enroll them based on only their test scores?  How dare you hire them based upon their experience?  Take note:  we have the affirmative action candidate and company to thank for this mess.