Wednesday, September 24, 2008

Fraud on Wall Street

Earlier this decade, the U.S. experienced a huge jolt when Enron collapsed and in the wake there was a five year investigation by the FBI relating to fraud. Now, the U.S. is experiencing another financial crisis with the collapse of several investment banks and as the Washington Post reports here, another round of investigations by the FBI is to commence. As has been reported by CNN, Federal Officials will be investigating potential criminal wrongdoing at the five firms of Fannie Mae, Freddi Mac, Lehman Brothers, Countrywide Financial and AIG. With these new additions, the total number of firms under investigation for corporate fraud is now 26, while the number of individuals under investigation, is closer to 1,400. It will be interesting to see how many more firms are put under investigation as the crisis continues.

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Mark Herpel said...

You should look at this chart of the day. The Lehman Bankruptcy is at least 7 or 8 times bigger than Enron.

I think it's going to get worse from here also, bailout or no bailout.

Priya said...

thanks for the insight Mark.