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.
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.
“Buffett Increases Wells Fargo Stake, Buys Stocks On Sale”
Don’t forget that Democrat crony capitalist weasel Franklin Raines.
If you have a quiet moment sometime, you should ask yourself how and why they get away with it.
“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.
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.
Interesting. Thanks for posting.
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.
Franklin Raines.. you are right. That’s the name I was trying to remember.
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.
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.
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.
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.