Bid-rigging probe widens

Four more companies confirmed Friday that they had received subpoenas from the antitrust division of the Justice Department and the Securities and Exchange Commission in a probe of bid rigging for deals to invest municipal bond proceeds.

A source familiar with the probe said subpoenas had been served to as many as 30 firms in the criminal investigation that has rocked the normally quiet $2-trillion municipal bond industry.

The Justice Department is seeking evidence on how municipal guaranteed investment contracts, known as GICs, were awarded.

School districts and local governments typically buy GICs from banks or insurance companies to park proceeds of tax-exempt bond issues before the funds are spent on public projects.

American International Group Inc., IXIS Corporate & Investment Bank, First Southwest Co. and Genworth Financial Inc. said Friday that they had received subpoenas.