A major investigation by the FBI into alleged corporate fraud among firms involved in the subprime mortgage crisis threatens to derail U.S. Treasury Secretary Hank Paulson's $700billion bail-out package.
As opposition to Paulson's rescue mounts in Congress, the Bureau revealed it is investigating dozens of big American financial firms amid allegations of corporate fraud.
Special investigator Richard Kolko would not confirm how many cases were ongoing but sources said the FBI is looking into 26 companies over alleged 'mis-statement of assets', with that figure set to rise.
Firms said to be involved in the probe, which is at an early stage, include mortgage guarantee giants Fannie Mae and Freddie Mac, insurer AIG and Lehman Brothers bank.
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Read More: Daily Mail