Steve Neavling
ticklethewire.com
The FBI is investigating whether Wall Street conspired to rig rates on Fannie Mae and Freddie Mac to manipulate the key derivatives market, Reuters reports.
Agents said the traders swapped messages through hand signals and ring tones to manipulate large orders by Fannie Mae and Freddie Mac.
Reuters wrote that a former high-level employee said the scam raked in $50 million to $100 million in profits.
The identities of the traders under investigation were not revealed.
