The recent bailout plan has been throwing up all kinds of red flags to the FBI. They have recruited the IRS to assist in the investigation of the bailout recipients’ books. The total amount of fraudulent mortgages recorded in the first quarter of 2008 is up 42% from the same period of last year. These numbers equate to about $1 Billion in losses generated from over 400 mortgage brokers, lenders and appraisers who are being investigated.
The big boys of AIG, Lehman Brothers, Countrywide, Fannie Mae and Freddie Mac lead the pack of the other 20 or so firms being investigated. The real issues here though are the thought of the government owning a majority (and the accompanying control) of these banks because of the loans, as well as the fact that the government is showing to many common folk that it’s OK to write bad checks, not pay up and not worry about it as “Big Brother” will cover the debt! Check out this poll for yourself.
But the bailout plan continues to bring more people, not just the FBI and IRS, to the table. The mess gets even more convoluted as the Federal Reserve Bank has supposedly struck a $30 Billion deal with Australia, Denmark, Norway and Sweden so it can lend money to U.S. banks!
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