U.S. Attorney Subpoenas Fannie & Freddie

The U.S. attorney in New York has subpoenaed Fannie Mae and Freddie Mac as part of an investigation into whether fraud contributed to the demise of these now government-owned mortgage investing giants. According to public filings, Fannie and Freddie said they face ongoing investigations from both the U.S. attorney and the Securities and Exchange Commission. The two agencies are seeking information about their accounting, financial disclosures, and corporate governance. Freddie said the subpoena it received involved matters for the period Jan. 1, 2007, to the present. Both companies -- which are operating under federal conservatorships -- said they will cooperate with the investigations. Besides the Fannie and Freddie probes, the FBI has launched preliminary investigations into the downfall of Lehman Brothers and American International Group. In addition, more than 20 subprime firms are the subject of criminal investigations by the government. The government seized control of Fannie and Freddie on Sept. 7.