Criminal Probe of Fannie Mae and Freddie Mac???

Anyone who has watched the Freddie Mac and Fannie Mae knows it has been a jobs program for the political elite. But can you imagine the can of worms that will be opened if they do a criminal investigation, think Enron folks, into the 2 big lending companies?

There are a bunch of big name pols that have their hands dirty in this business if the lack of capitalization is accurate. This could get ugly real fast.

Texas Sen. John Cornyn, citing a 2006 finding that Fannie Mae intentionally overstated earnings, called for a criminal probe of the mortgage giant and Freddie Mac in the wake of a government bailout to prevent their collapse.

Cornyn requested the investigation in a letter to Attorney General Michael Mukasey. The two government-sponsored companies were placed in a government conservatorship by the U.S. Treasury this week.

There are “serious concerns whether a well-documented culture of corporate executive corruption at these organizations contributed to the mortgage giants’ collapse,” Cornyn said in the letter. He urged the Justice Department to “determine to what extent any illegal activities led to the institutions’ failure.”