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Government Sues Biggest U.S. Banks Over Mortgage-Backed Investment
FoxNews ^ | 9/2/11 | Jim Angle and The Associated Press

Posted on 09/02/2011 7:17:45 PM PDT by Blood of Tyrants

Edited on 09/02/2011 7:32:11 PM PDT by Admin Moderator. [history]

In a sweeping move that opens a new front on the housing crisis, the U.S. 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.


(Excerpt) Read more at foxnews.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: fanniemae; freddiemac; lawsuit; obamaville; shakedown
I wish I could say that this is shocking, but it isn't. The liberals CAUSED the problem by forcing banks to make what anyone with one eye and a grain of sense knew were bad loans to people with no income and no job. And now the same effing liberals want to sue someone else for their f--- up!
1 posted on 09/02/2011 7:17:51 PM PDT by Blood of Tyrants
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To: Blood of Tyrants

Its a shakedown. Watch the demonrats campaign coffers swell.


2 posted on 09/02/2011 7:20:02 PM PDT by killermosquito (Buffalo, Detroit (and eventually France) is what you get when liberalism runs its course.)
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To: Blood of Tyrants

ok, ok, i hate to be one of the duplicates police but this is getting silly, because it busts up FR commentary on the same news into many little threads each with a few people.


3 posted on 09/02/2011 7:20:44 PM PDT by HiTech RedNeck (There's gonna be a Redneck Revolution! (See my freep page) [rednecks come in many colors])
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To: Blood of Tyrants

Ally (GMAC),
Bank of America, Countrywide, Merrill Lynch
Barclays
Citigroup
Credit Suisse
Deutsche Bank
First Horizon
General Electric
Goldman Sachs
HSBC
JPMorgan Chase
First Franklin
Morgan Stanley
Nomura
The Royal Bank of Scotland
Societe Generale.

Brits, French, Germans, Japanese, Swiss, Scots.

Also interesting who ISN’T on the list.


4 posted on 09/02/2011 7:26:47 PM PDT by PAR35
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To: Blood of Tyrants

Yeah, it’s pretty typical, but it’s going to be interesting when the case gets to court and the banks prove that the reason the loans were toxic is because of Freddie and Fannie’s rules, not in spite of them. I’m not sure the adminisrtation wanted some of this to be made a matter of record.

Gonna be Funnnn!


5 posted on 09/02/2011 7:29:35 PM PDT by ArmstedFragg (hoaxy dopey changey)
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To: Blood of Tyrants

How convenient, a Friday PM pre-Labor Day news dump on a
move that’s sure to result in more bank job losses.


6 posted on 09/02/2011 7:36:47 PM PDT by rfp1234
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To: Blood of Tyrants

All a part of their little takeover they are doing before our eyes. if they somehow scam his way into victory in 2012 I think chances of an American Revolution are like 90% in Obama’s second term as he tries to take over. They are playing out the whole communist plan for decades now it is just public as they are confident that they can keep as many people in the dark as possible. Nice and distracted. Anyone see Snookie something lately? I heard about her on the radio today driving home from work. Some poll asking if we wanted to love our lives like her. Had I been asked I would have said who the hell is this? I still do not know and most likely will not even google this person. All a distraction.


7 posted on 09/02/2011 7:41:32 PM PDT by DebraAI
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To: DebraAI

You hit the nail on the head.


8 posted on 09/02/2011 7:48:41 PM PDT by whitedog57
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To: Blood of Tyrants

This is outrageous. You put your finger right on it — the Dem pols created the mess that has impoverished the nation and are suing the people they forced into this mess. No wonder the organization the absolutely lowest level of respect is the federal gov’t. There ought to be a lot of them locked up for a long time for this level of malfeasance and corruption.


9 posted on 09/02/2011 7:52:26 PM PDT by ProtectOurFreedom
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To: ProtectOurFreedom

Maxine Waters was talking about driving banks out of business the other day


10 posted on 09/02/2011 8:01:19 PM PDT by molson209
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To: Blood of Tyrants
So Congress (hack spit) is gonna sue the same companies they threatened to tax into oblivion if they didn't give away bad loans?

Bizzarrroooo

11 posted on 09/02/2011 8:15:34 PM PDT by rawcatslyentist (It is necessary that a person be born of a father who is a citizen; ~Vattel's Law of Nations)
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To: PAR35

It’s worth noting that one of Barclays’ biggest clients is Robert Mugabe of Zimbabwe.


12 posted on 09/02/2011 8:17:03 PM PDT by SpaceBar
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To: Blood of Tyrants

Banks have a great defense. There were cajoled, coerced and threatened into making those loans by the likes of Barney Frank and Chris Dodd.


13 posted on 09/02/2011 8:20:27 PM PDT by SeaHawkFan
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To: Blood of Tyrants
How about going after the guy that started the ball rolling? Jim Johnson while head of Fannie Mae? I can't recommend "Reckless Endangerment" highly enough.

Blame Fannie Mae and Congress For the Credit Mess

14 posted on 09/02/2011 8:21:19 PM PDT by PogySailor (The ruling class will not go down easily. And neither will their paid hacks.)
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To: SeaHawkFan

Hell, they ought to counter sue for harassment. I am sure with all the money they have, they will get lawyers who are much better than Holder’s sycophants.


15 posted on 09/02/2011 8:44:08 PM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: Blood of Tyrants
This was true when Fannie Mae and Freddie Mac were government-sponsored enterprises (GSEs).

I recall Congressional testimony (FED chairman Greenspan, I think) saying that Fannie Mae is (could be) misleading investors by not making it clear that the government DOES NOT back their securities. All investors thought that their investments were absolutely safe. They were not but the U.S. taxpayer wound up getting stuck with the bill to compensate investors despite the law.

I have no idea about investopedia but the following two paragraphs support what I remember about the government's responsibility to back Fannie Mae and Freddie Mac. The government had no responsibility.

"Fannie Mae (the Federal National Mortgage Association) is sponsored by the U.S. government and can issue and guarantee MBS [mortgage-backed security] issues. It's a publicly traded company, and was established to maintain capital liquidity and to ensure that low- to middle-income individuals are able to purchase homes. Note that Fannie Mae's guarantee is based on its own corporate health, and is not backed by the government.

"Freddie Mac (the Federal Home Loan Mortgage Corporation), is similar to Fannie Mae in that it is also sponsored by the U.S. government and is owned by stockholders. It was created to provide competition in the secondary mortgage market, which Fannie Mae originally monopolized. Like Fannie Mae, Freddie Mac can issue and guarantee mortgage-backed securities, but its guarantee is not backed by the government."

Johnson, Gorelick, and all the other insider hacks that infest our government were stuffing their pockets by cranking out lies and worthless paper for years and years -- and now the taxpayers are paying the price and then some.

.. Johnson, Gorelick, and other worthless hacks are the victims?!

16 posted on 09/02/2011 8:59:06 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: Blood of Tyrants
Here's Obama/Holder Dept. of Just Us Civil Rights recently hired GS "social justice" activists going after small banks making offers that they cannot.. cannot refuse.

Look at what DoJ "civil rights" thugs are doing to ALL banks for the evil they are doing to "communities of color".

It makes no difference that "lenders don't actively discriminate, they can still be sued [by Obama] if the cumulative effect of their actions implies discrimination."

and guess what? The banks are not allowed to talk to media or Congress about the lawsuits against them -- the banks are compelled to sign documents prohibiting such dialog.

The author of the article said that the banks are paying rather than contest the charges and the money is going to "community activists" -- JUST LIKE IT DID WHEN OBAMA WAS THE HEAD STREET ORGANIZER OF SUCH EFFORTS (IMO). Of course the Rat Party gets a kickback as does Obama campaign.

17 posted on 09/02/2011 9:04:26 PM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: PAR35
Also interesting who ISN’T on the list.

Many folks can be brought in. This will backfire on the Obots.

18 posted on 09/02/2011 9:25:11 PM PDT by Mike Darancette (O-blame-r)
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To: Blood of Tyrants

Good opportunity to learn what the FHA, Freddie, Fannie and the ratings companies knew.


19 posted on 09/02/2011 9:25:50 PM PDT by Mike Darancette (O-blame-r)
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To: PAR35

Not sure the government has enough lawyers or staff to handle all these suits.


20 posted on 09/02/2011 9:30:48 PM PDT by Mike Darancette (O-blame-r)
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To: Blood of Tyrants

It is amazing that Wells Fargo was not on the list of banks subject to this action.

Or maybe not, when one considers this 8/16/2011 headline from Bloomberg: “Buffett Increases Wells Fargo Stake, Buys Stocks ‘On Sale’”.

You be the judge.


21 posted on 09/02/2011 9:50:08 PM PDT by Skepolitic
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To: PAR35

Wells Fargo.

“Buffett Increases Wells Fargo Stake, Buys Stocks ‘On Sale’”
8/16/2011


22 posted on 09/02/2011 9:50:56 PM PDT by Skepolitic
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To: WilliamofCarmichael

Don’t forget that Democrat crony capitalist weasel Franklin Raines.


23 posted on 09/02/2011 9:53:17 PM PDT by Skepolitic
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To: rawcatslyentist
So Congress (hack spit) is gonna sue the same companies they threatened to tax into oblivion if they didn't give away bad loans?

Bizzarrroooo

If you have a quiet moment sometime, you should ask yourself how and why they get away with it.

24 posted on 09/02/2011 10:54:18 PM PDT by danielmryan
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To: SeaHawkFan

“Banks have a great defense. There were cajoled, coerced and threatened into making those loans by the likes of Barney Frank and Chris Dodd.”

While that is true, they didn’t have to do it! The fact is that the large banks are a bunch of greedy bastards who knew exactly what they were doing and what the end result would be. But what the hell, they had a couple of years of gravy with which to send their spawn to those prep schools on Long Island. As far as I am concerned, they are as rotten as the Feds. The other truth is that GWB and the Republicans knew what was happening on their watch and really didn’t do much to try and stop it when they had the legislative muscle to do it.


25 posted on 09/02/2011 11:03:01 PM PDT by vette6387 (Enough Already!)
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To: Blood of Tyrants

I think the thread deserves a reward for some of the most ill informed statements I have ever read. The banks spend millions and millions, millions, advertising loans, and refinancing products, now you think they can go into court and say they forced us. Are you people from a different planet.


26 posted on 09/03/2011 2:15:07 AM PDT by org.whodat (What does the Republican party stand for////??? absolutely nothing.)
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To: Blood of Tyrants; PAR35

Interesting. Thanks for posting.


27 posted on 09/03/2011 5:07:02 AM PDT by PGalt
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To: Blood of Tyrants

Please alert all your friends as this is a step towards redistribution of wealth, stockholder equity in this case, and nationalization of the banking industry. For years our politicians have forced banks to make bad loans and cut margins on good loans, then played the public against them when fee income had to be increased to cover the bad loans. Banks are the most heavily regulated industry and what good has that done? And yet the government would have us believe they can do it better? This is just another step for controlling what should be a scarce asset (money) and giving the government a means of introducing more (and increasingly more worthless) money into the system. For those of you who see precious metals as the offset to this risk, beware. Roosevelt used the Gold Act of 1934 to rob citizens and prohibit gold ownership. I’m betting a similar act is in the works, especially with all the tax revenue the government has missed in recent years of trading. I firmly believe if conservatives lose the 2012 elections that America, as we remember it, is lost forever.


28 posted on 09/03/2011 6:04:07 AM PDT by Boomer One
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To: Skepolitic

Franklin Raines.. you are right. That’s the name I was trying to remember.


29 posted on 09/03/2011 7:30:02 AM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: Skepolitic

Certainly the most noticeable of the domestics. But remember Buffett just bought about $5 billion in BofA. So I don’t think that’s going to be a determining element.


30 posted on 09/03/2011 7:43:35 AM PDT by PAR35
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To: Boomer One

Yes, there is always the possibility that Obastard and a Rat Congress would make ownership of gold coins and bullion and maybe even more than a small amount of gold jewelry illegal.


31 posted on 09/03/2011 8:28:09 AM PDT by Blood of Tyrants (Islam is the religion of Satan and Mohammed was his minion.)
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To: Blood of Tyrants

Although this was known several days in advance and all over the internet, the Feds waited for Friday to avoid publicity and let the matter sink out of sight over the weekend.

Bound to affect the value of the sinking dollar one way or another next week.


32 posted on 09/03/2011 8:28:39 AM PDT by wildbill (You're just jealous because the Voices talk only to me.)
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To: danielmryan

The electorate has been sufficiently dumbed down in our public schools to the point they cannot identify tyranny in any form, I mean, unless you drive a muscle car, carry a gun, or seek to minimize the number of abortions.

Oh yes, they have been educated to recognize THOSE maniacs.


33 posted on 09/03/2011 8:33:23 AM PDT by Bshaw (A nefarious deceit is upon us all!)
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