Fannie Mae-No Politics (FNMA)

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[bFBI fears Fannie, Freddie getting fleeced: report
8:31 AM ET 1/14/14 | MarketWatch
NEW YORK (MarketWatch) -- The Federal Bureau of Investigation is probing whether traders are front-running mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) in the swaps market, Reuters reported Tuesday. The report, citing an FBI intelligence bulletin, said some traders were using "unsophisticated tradecraft" such as hand signals and special ring tones as they conspired to rig rates on large orders submitted by Fannie and Freddie. According to the bulletin, the information came from a former high-level employee at a U.S. bank and a Canadian bank employee, Reuters reported. The bulletin didn't name any of the traders or banks suspected of the activity or whether it might extend beyond the two banks, the report said. Reuters said spokesmen for Fannie and Freddie didn't immediately return requests for comment, while the Securities and Exchange Commission and the Commodity Futures Trading Commission declined comment.

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January 14, 2014 08:31 ET (13:31 GMT)

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