Skip to comments.U.S. government 'to sue' 17 major banks for billions over financial crisis mortgage sales
Posted on 09/03/2011 9:37:05 AM PDT by Do Not Make Fun Of His Ears
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 those targeted by the lawsuits were Bank of America Corp., Citigroup Inc., JP Morgan Chase & Co., and Goldman Sachs Group Inc. Large European banks including The Royal Bank of Scotland, Barclays Bank and Credit Suisse were also sued.
The lawsuits were filed by the Federal Housing Finance Agency. It oversees Fannie and Freddie, the two agencies that buy mortgages loans and mortgage securities issued by the lenders.
The total price tag for the mortgage-backed securities sold to Fannie and Freddie by the firms named in the lawsuits: $196 billion.
(Excerpt) Read more at dailymail.co.uk ...
Barry is going to need a lot of “donations” from his lawyer voting base this time around. This will keep his lawyers happy and also make sure they have the money to send to the Kenyan and his commie ‘RAT pals.
They should sue Janet Reno for telling the banks to loan or else they would go after them. They should also sue barney franks and chris dodd for forcing this through government intervention. I welcome the lawsuit because these assholes will have to testify............
The federal government overstepped its constitutional bounds when it created all these agencies and the idiots who run them know nothing about banking, finance, lending, security, etc, nor do the socialist congressional idiots who oversee them and they have no incentive for making sound financial decisions and now it’s all collapsing.
196B is chump change in this fiasco assuming they are found responsible for failing to use due dilligence. Let me see, they sold securities to fannie et al based upon AAA ratings by an independent rater. Good luck with that one unless they show the banks paid off SandP to keep the ratings up. Meanwhile, this who thing is a civil case designed to obfuscate the real guilty parties, the banks, the Congress, and the real estate industry. By the time this works though the courts, my grand children will be reading about it on face book. Meanwhile, all the criminal statutes will have run, a new congress scum will be seated, lobbists will be working for other clients and the nation will be farther in debt.
A little light reading from the last two days.
With CRA (Jimmy Carter and pushed by Bill Clinton)we were under a microscope to lend to the "minorities" with loose underwriting standards etc. If we didn't we were written up and it would be a stain on our bank.Now the govt. which caused the problem is going after the banks......unbelievable.
Did a search and the titles didn’t match.
Oh well, this is a story that NEEDS to be repeated again and again and again. It’s (hugh and series) and exposes exactly the government crisis we’re in.
I posted this on an identical but different thread
“It would seem to me that this is perhaps counter productive because it can lead to discovery of what really happened. They might not subpena The Queeah (a little Yankee dialect there) from Massachusetts, but there might be many called who directed forcefully bankers to make loans or else.
There was extortion of sorts and intimidation that resulted in trashing sound banking. The door is now open to testimony from perhaps hundreds of examiners around the country that delivered the message to bankers.
At least it seems that way to me.”
Of course, they use our taxes to pay for the suit...so they have inexhaustable funding.
Excellent point. I would love to see Mark Levin on this.
That’s OK. I’ll bet it’ll get posted 5 more times today.
I hope so. This needs to be shouted from the housetops.
I had a latino couple who could speak no English and didn't have proof of income (they were migrant workers in the crop industry)but they had a green card.......no way I would have lent them money.. After I turned them down for lack of verifiable income I was visited by our CRA officer and told to do the loan..........
The Government is in effect “suing itself”, but making it look like a “Grand Gesture” in aiming the suit against the very institutions the Government itself demanded enforce its Agenda through Fannie,Freddie, etc. It is seeking a fall guy that will play well with the progressive base consitituencies they think will respond well to a gesture like this, which is as knotted and contradictory as things like this can ever get. It’s cannibalism, nothing more or less, with the ultimate goal of making the Obama Administration look like they’re doing something noble and bold. What a FARCE!
HOW DARE YOU DO WHAT WE TOLD YOU TO DO!
“(hugh and series)”
Nah! In Community Organizer Speak, It’s “mute and irrevalunt!”
Sorry, that is unpossible. The closest I can come is that the Gubermint is blaming their victims. It is a strange gambit because the best defense is to lay out how the Gubermint forced them into this situation. Disbelief must be suspended to enter any further into a discussion of this.
Easy to understand - Obama takes his entire approach to the nation from his cultural icon, Vladimir Lenin.
Think extortion remember your dealing with Obama&Co.
Maybe the banks will sue Jimmah Carter for starting the problem in the first place in 1977 with the CRA.
I love the idea of suing Janer Reno.
Don’t forget the part that Henry Cisneros played-—he was pushing for any & all minorities to ‘get their piece of the home ownership pie’.
“Moving on up—to the east side.....”
But will not investigate Fannie Mae and Freddie Mac or the goverment that sued the 17 financial firms in the first place to make the loans that went bad
We forced you to make loans to people who didnt even have a job AKA the community reinvestment act ala Carter and Clinton, now we are going to punish you for giving those loans out
1. Demonize the banks for not making unsecured loans
2. Sue the banks to make unsecured loans
3. Banks makes unsecured loans
4. Loan goes bad
5. Demonize the banks for making unsecured loans
6. Sue the banks for making unsecured loans
7. Banks stops unsecured loans
...Go back to step 1. and repeat....
Oh they’ll back off when the BigB’s army of attorneys start supoenaing all the records of Frank,Dodd, Turbo Tim, Bernacke, Paulson etc etc etc.
I would love to see the records of the meeting where Bernack and Johnson threatened on Back. That if they didn’t go along with the bailout they would suddenly have a liquidity ratio problem.
And Timmy deciding WHICH banks get bought by who, now that was rich.
This is going to go away fast. Count on it. It won’t be the banks going to prison it will be Admin, Fed and Bank regs people going to club Fed.
Don't forget Boy Obama who used his lawyerly skills to lobby the Clinton administration to beef up the CRA...the same Obama who organized sit-ins at Bank of America to force them to increase the number of sub-primes issued.
Now the Obama administration wants to sue Bank of America for issuing the junk loans he pressed them to grant in the first place? Uh-huh.
Money Laundering, bribes, corruption