Feds Sue 17 Large Banks

[falcon]

The charge: The feds claim those banks sold Fannie Mae and Freddy Mac toxic mortgage backed securities. This reeks of politics.


http://finance.yahoo.com/news/Report...97747.html?x=0

NEW YORK (AP) -- In a sweeping move, the government on Friday sued 17 financial firms, including the largest U.S. banks, for selling Fannie Mae and Freddie Mac billions of dollars worth of mortgage-backed securities that turned toxic when the housing market collapsed.

Among the 17 targeted by the lawsuits were Bank of America Corp., Citigroup Inc., JP Morgan Chase & Co., Goldman Sachs.
The lawsuits were filed Friday by the Federal Housing Finance Agency which oversees Fannie and Freddie, the two agencies that buy mortgages loans and mortgage securities issued by the lenders.

The total price tag for the securities bought by Fannie and Freddie affected by the lawsuits: $196 billion.
The government didn't provide a dollar amount of how much it seeks in damages. It said that it wants to have the purchases of the securities canceled, be compensated for lost principal and interest payments as well as attorney fees and costs. The lawsuits allege the financial firms broke federal and state laws with the sales.

[burniegoeasily]

Ive been reading about this. And I agree with you. Smells awful political.


Makes me think of one Barney Frank ensuring everyone that all is well, just days before the crap hit the ocillating wind machine.

[Lunkerdog]

I'd say it's liberal politics at it's finest. The Clinton admin. got this ball rolling. When the Bush admin. figured out this really wasn't a good idea the likes of Dodd and Frank raised holy hell in congress and blocked any attempts to stop it.

Since the sub-prime meltdown all the sub-prime lenders saw was the big bad bank foreclosing on their homes. Now the libs, the very people that started this mess go after the big bad banks. To all the sub- primers that lost their homes, and any small business, or wannabe start ups that can't get a loan the libs look like their hero's for going after the big bad banks.

Yup, I'd say it's political!!!

001_Document.pdf

[Fieldmouse]

Obama hates industry and is killing America on purpose. Got a better excuse?

[Fieldmouse]

One of the most if not the most heavily regulated industry and HD wants to regulate them even more. Heck, why not? Why do we need any jobs here in America? Put everyone on welfare.

[ipscshooter]

Originally Posted by hockeydad

Go after 'em and regulate 'em.

http://aworriedcitizen.wordpress.com...ank-employees/

The taxpayers have given them $2.2 trillion dollars. They need to get every cent back with interest.

Banks were not "given" 2.2 Trillion dollars. The peak outstanding was 2.177 Trillion as of January 2009. As of July 2011, the balance outstanding is down to $246.5 Billion.

[homers brother]

Originally Posted by hockeydad

Go after 'em and regulate 'em.

Regulate who? The banks? Or shysters like Frank and Dodd?