Posted on 09/01/2011 8:31:48 PM PDT by blam
US Preparing To Sue Banks For Billions Over Misrepresenting Safety Of Mortgage Securities
Zeke Miller
Sep. 1, 2011, 10:37 PM
The New York Times scoops that the federal government is preparing to file suit against a dozen major banks in the coming days for their roles in 2008 financial crisis.
The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, is alleging that the banks misrepresented the quality of mortgages bundled together as securities — billing subprime loans as secure investments.
Among the banks set to be slapped with lawsuits according to the Times are: Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank. The agency filed suit against UBS earlier this year for $900 million in damages.
Fannie and Freddie lost more than $30 billion during the financial crisis — at least in part due to the bad loans they bought.
The lawsuits are expected to be filed Friday, or else just after the holiday weekend.
(Excerpt) Read more at businessinsider.com ...
Obama jobs plan?
Stimulus for attorneys?
That makes sense. We had to spend all that TARP money so that the banks would have enough money for us to sue them.
Aren’t these the same banks who got HUNDREDS OF BILLIONS in bailout money from this same administration?!
I need to hear this like I need a hole in the head.
I’m not all that enamored of Big Banking, but c’mon, after the government in concert with community organizers hassles banks into writing loans which were already known to be far riskier than normal, why should the government turn around and try to penalize banks for bowing to its will?
The list, ping
Let me know if you would like to be on or off the ping list
Hope you don’t have any more than $100,000 in any one bank. That is all that the FDIC will guarantee.
Wish they would sue Johnson, Gorelick, Raines, and other prominent progressives who cooked the books at Freddie and Fannie in order to obtain gigantic bonuses.
The campaign is starting. First up ‘show trials’ to appease the capitalist hating leftists in Obama’s base.
This though could backfire very badly for the left-wing. Those in Obama’s administration are not to smart at all. Logically if you sue someone they fight back. If government officials and Congress is forced to testify under oath it may not fair well for democrats. This also may not help the democrats campaign donations as well.
Who were also forced into what they are being sued over by the government?
Too big to fail.
Not to big to sue.
Nothing the Kenyan does any more surprises me. Nothing.
More of our money for their slush funds. Just throw the bums from the government in the clink.
Lets hope that of these corrupt democrat cronies get forced to testify and their criminal actions get further exposed and used by the legal team defending the banks.
Wait, what? The government is going to sue private banks for monetary damages payable to whom ... the government? And then the banks will turn around and get a bailout from whom ... the government ... to pay the government’s damages? Oh, yeah, THIS makes a lot of sense. /s
I was thinking the same thing. They're mostly minorities though and deserve all they stole, right?
” ( - - - The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, is alleging that the banks misrepresented the quality of mortgages bundled together as securities — billing subprime loans as secure investments. - - ) .
FINALLY, the CYA technique of the Feds is on its way to trial !
Everybody knows that in September, 2008 the FHA went bankrupt, along with Fannie and Freddie. Some even call it the bursting of “The Fannie Bubble.”
Emeritus Sheriff of Nottingham Walk-the-Plank-Hank set out to perform a CYA maneuver which was bought by the L.I.E. Media and then sold to the public.
In July, 2008 Robo-Congressman Sub-prime Barney and Crissey Doodle-Doo misrepresented the financial stability of the entire Fannie Bubble.
The FHA, Fannie and Freddy did not do THEIR due diligence.
Heads need to roll starting with Barney, Crissey and the leaders of Fannie, Freddie, and especially the leaders of the FHA.
What a scam!
We need to clear the rats out of DC
“Obama and the banks are on the same side. “
I dont disagree but for the banks not to defend themselves would make this even more interesting.
My first reaction was that this is a show trial for Obama far left base in order to get them really riled up that Obama is really fighting against those evil capitalists on Wall Street.
But why would the banks just allow themselves to be damaged this way?
It would seem to me that the Obama administration is biting off more then they could chew possibly. Banks that were friends may turn against him. Democrat corruption may be exposed by banks legal teams in efforts to fight back.
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