Legendary stock market investor Warren Buffet will pump in $5 billion into Goldman Sachs. The former investment bank says it will raise at least $7.5 billion from Waren Buffet's Berkshire Hathaway and Public investors. An investment by Buffet is seen as a huge confidence booster in Goldman Sachs. On Sunday, Goldman won Federal Reserve approval to become a bank holding company, giving it easier access to financing and adding to speculation it might buy another bank. The US turmoil has sent Goldman's shares fallingby 50 per cent from its record highs.Washington: The FBI is investigating four major US financial institutions whose collapse helped trigger a $700 billion bailout plan by the Bush administration.
Two law enforcement officials said Tuesday that the FBI is looking at potential fraud by insurer American International Group Inc and mortgage finance giants Fannie Mae and Freddie Mac. Additionally, a senior law enforcement official said Lehman Brothers Holdings Inc also is under investigation.
The inquiries will focus on the financial institutions and the individuals who ran them, the senior law enforcement official said.
The law enforcement officials spoke on condition of anonymity because the investigations are ongoing and are in the early stages.
Officials said the new inquiries bring to 26 the number of corporate lenders under investigation over the past year.
Spokesmen for AIG, Fannie Mae and Freddie Mac did not immediately return calls for comment. A Lehman spokesman did not have an immediate comment.
Just last week, FBI Director Robert Mueller put the number of large financial firms under investigation at 24. He did not name any of the companies under investigation but said the FBI also was looking at whether any of them have misrepresented their assets.
Over the past year, as the housing market cratered, the FBI has opened a wide-ranging probe of companies across the financial-services industry, from mortgage lenders to investment banks that bundle home loans into securities sold to investors.
Mueller has previously said the FBI's hunt for culprits in the nation's subprime mortgage crisis focused on accounting fraud, insider trading, and failure to disclose the value of mortgage-related securities and other investments.
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