Fed Wises Up.. Wants To Know If GM Commited Bankruptcy Fraud By Hiding Ignition Defect To Gain Bailout

Federal authorities are investigating whether General Motors hid an ignition switch defect when it filed for bankruptcy in 2009, The New York Times reported on Saturday.

The Justice Department's investigation of the automaker includes a probe of whether GM committed bankruptcy fraud by not disclosing the ignition problem, a person briefed on the inquiry told the Times on Friday, the paper said.

Authorities also are investigating whether GM understated the defect to federal safety regulators, the Times said. The ignition switch problems led to the recall of 1.6 million vehicles last month.