http://www.businessweek.com/news/20...loses-probe-without-action-after-wells-notice To my understanding, such fraud charges have been very numerous over the past 4 years, both civil and criminal. Perhaps it is because mortgage-security fraud was a big at the center of Bear Stearns' and Lehman's bankruptcy. Perhaps it was also a big part of why so many of AIG's CDO insurance policies went against AIG. Since the dropoff in the economy four years ago, I look at the first-time home buyer tax-credit, endless philosophical bailout-bickering between political parties, the 2006 housing bubble and the 2005 bankruptcy legislation, and I begin to think that AIG's bailout (and some others) look more like hush money. I don't know exactly how AIG's insurance policies (swaps) were written, but it seems to me they wrote policies for what the believed to be good-credited mortgage-securities when in fact they were complete crap (subprime). Eventually, the mortgage-securities failed to pay out and AIG and investers lost big time. In came the government with the promise of $100's of billions in bailouts. To me it looks like AIG was stuck between a rock (bankruptcy) and a hard place (recovering frauded investments from bankrupt companies).
