Skip to comments.Government Sues Biggest U.S. Banks Over Mortgage-Backed Investment
Posted on 09/02/2011 7:17:45 PM PDT by Blood of TyrantsEdited 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 ...
Its a shakedown. Watch the demonrats campaign coffers swell.
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.
Bank of America, Countrywide, Merrill Lynch
The Royal Bank of Scotland
Brits, French, Germans, Japanese, Swiss, Scots.
Also interesting who ISN’T on the list.
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!
How convenient, a Friday PM pre-Labor Day news dump on a
move that’s sure to result in more bank job losses.
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.
You hit the nail on the head.
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.
Maxine Waters was talking about driving banks out of business the other day
It’s worth noting that one of Barclays’ biggest clients is Robert Mugabe of Zimbabwe.
Banks have a great defense. There were cajoled, coerced and threatened into making those loans by the likes of Barney Frank and Chris Dodd.
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.
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?!
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.
Many folks can be brought in. This will backfire on the Obots.
Good opportunity to learn what the FHA, Freddie, Fannie and the ratings companies knew.
Not sure the government has enough lawyers or staff to handle all these suits.