Sen. Brown calls for criminal investigation of Freddie, Fannie
18.05.12
Brown, who will likely face consumer financial protection advocate and Harvard professor Elizabeth Warren in his November bid for re-election, has been taking a tough stand against alleged financial shenanigans. He is also pushing hard for a law that will ban staff and members of Congress from making investment decisions based on non-public information they obtain while on the job.
"The taxpayer is currently on the hook for at least a $150 billion loss at Fannie and Freddie - one which will likely continue to grow and which likely will never be repaid. Since the housing bubble burst, U.S. homeowners have lost $9 trillion in household wealth. Millions remain unemployed," Brown wrote in his letter today. "I urge the Department of Justice to work with the Securities and Exchange Commission to immediately re-open a criminal investigation into Fannie Mae and Freddie Mac. If the investigation uncovers illegal actions, criminal prosecution should be pursued and people should go to jail."
Source: Boston Herald