Financial Roundup: LandAmerica Leaves Investors Hanging, GAO Urges Faster Bailout Controls, Small Business Credit Available, Go Bankrupt and Face the SEC

Investors trapped in LandAmerica bankruptcy — Hundreds of real estate investors are scrambling to recover their money from what were to be low risk and brief investments with title insurance firm LandAmerica Financial Group. The Richmond, Va.-based firm declared bankruptcy last week after a merger with a rival failed. [Source: The Wall Street Journal]

GAO urges bailout controls — The GAO is urging the Treasury Department to move faster to ensure adequate controls for the $700 billion finanicial bailout. The accounting unit claims Treasury still cannot ensure that firms receiving bailout money are expanding credit and readjusting mortgages. [Source: The New York Times]

Credit not the problem with small business lending — An SEC panel says that credit is available for small business lending. Frazzled businesses, however, are not applying for loans as they wait to see how the financial meltdown proceeds. [Source: CFO.com]

Go bankrupt and face the SEC — A study by the Deloitte Forensic Center shows that firms that file for bankruptcy are three times more likely to face SEC enforcement actions. The firm studied 519 companies that filed for bankruptcy between 2000 and 2005 versus a contorl group of 2,919 companies. [Source: Directorship.com]

Fidelity to reopen two funds — Fidelity Investments plans to reopen two mutual funds that were shut down in 2003 and 2006. Both funds deal with low-priced stocks, now in great supply. [Source: The Los Angeles Times]