Finance Giant Asks Top Law Firm to Probe Lobbying re Mortgage Regs

Freddie Mac has asked Covington & Burling to conduct an internal probe of the finance giant's own $2 million lobbying campaign.

The lobbying effort was mounted to counter a 2005 effort in Congress to enact new regulations that would have required Freddie Mac to sell a substantial amount of mortgages and mortgage-backed securities in its portfolio, reports the Associated Press. Subsequently, these assets have plummeted in value.

Attorney Stephen Anthony, who formerly worked as a U.S. Department of Justice prosecutor, is in charge of the law firm's investigation. It was sparked by a series of AP articles and focuses on payments made by Freddie Mac to lobbyists and consultants, according to the news agency.