The U.S. Justice Department opened an investigation into the trading of unsecured bonds issued by government-backed, mortgage-finance companies Fannie Mae and Freddie Mac, Bloomberg News reported June 1, citing people familiar with the matter.
The investigation is in its early stages, and prosecutors are looking at possible collusion among traders in the $550 billion market, the news outlet wrote. Prosecutors are looking at possible fraud and antitrust violations.
The Justice Department began investigating traders' manipulation of the market during the administration of former President Barack Obama, Bloomberg said. The Obama administration secured billions of dollars in settlements and criminal charges related to rigging currency markets and benchmark interest rates.
