Wall Street Traders Rip Off Fannie Mae And Freddie Mac Via Swaps?

A Reuters report says Wall Street traders may be guilty of front-running Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie / Federal Home Loan Mortgage Corp (OTCBB:FMCC) while executing the massive interest swap orders placed by the housing mortgage giants.

Reuters reviewed an FBI Intelligence Bulletin that says an employee at a US bank, and another at a Canadian bank blew the whistle on the practice – which involves placing orders on account of the bank before those of the client- to benefit from the market...