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U.S. government 'to sue' 17 major banks for billions over financial crisis mortgage sales
Daily Mail ^ | 9/3/11 | Daily Mail Reporter

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 ...


TOPICS: Government; News/Current Events
KEYWORDS: fanniemae; freddiemac; housing; mortgage; shakedown
Someone help me understand this.
1 posted on 09/03/2011 9:37:11 AM PDT by Do Not Make Fun Of His Ears
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To: Do Not Make Fun Of His Ears

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.


2 posted on 09/03/2011 9:42:59 AM PDT by FlingWingFlyer (Coming November 2012 - The End of an Error.)
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To: Do Not Make Fun Of His Ears
Someone help me understand this. The left trying to buy votes and destroying the system at the same time I think.
3 posted on 09/03/2011 9:44:33 AM PDT by ColdOne (I miss my poochie... Tasha 2000~3/14/11)
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To: Do Not Make Fun Of His Ears

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............


4 posted on 09/03/2011 9:45:34 AM PDT by richardtavor (Pray for the peace of Jerusalem)
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To: Do Not Make Fun Of His Ears

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.


5 posted on 09/03/2011 9:46:16 AM PDT by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: Do Not Make Fun Of His Ears

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.


6 posted on 09/03/2011 9:47:39 AM PDT by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: Do Not Make Fun Of His Ears

A little light reading from the last two days.

http://www.freerepublic.com/focus/f-news/2773094/posts
http://www.freerepublic.com/focus/f-news/2772926/posts
http://www.freerepublic.com/focus/f-news/2772902/posts
http://www.freerepublic.com/focus/f-news/2772809/posts
http://www.freerepublic.com/focus/f-news/2772611/posts
http://www.freerepublic.com/focus/f-news/2772491/posts
http://www.freerepublic.com/focus/f-news/2772469/posts
http://www.freerepublic.com/focus/f-news/2772431/posts
http://www.freerepublic.com/focus/f-news/2772412/posts
http://www.freerepublic.com/focus/f-news/2772392/posts


7 posted on 09/03/2011 9:48:39 AM PDT by KingKongCobra
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To: ColdOne
As a former loan officer (30yrs.) I watched while Fannie and Freddie pushed "liar loans" no income/asset verification and now they want to sue the banks for doing them? What a farce......when I started in business you needed 20% down...they did not have the Community Reinvestment Act and you didn't see the failure of the housing market.

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.

8 posted on 09/03/2011 9:48:56 AM PDT by estrogen (2012 can't come soon enough)
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To: KingKongCobra

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.


9 posted on 09/03/2011 9:53:24 AM PDT by Do Not Make Fun Of His Ears ("But resist, we much...we must...and we will much...about...that...be committed." - Al Sharpton)
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To: estrogen

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.”


10 posted on 09/03/2011 9:54:52 AM PDT by bert (K.E. N.P. +12 ....Rats carry plague)
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To: Do Not Make Fun Of His Ears
These companies are audited annually by the Feds...so I don't think it's going anyplace...

Of course, they use our taxes to pay for the suit...so they have inexhaustable funding.

11 posted on 09/03/2011 9:56:57 AM PDT by Sacajaweau
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To: bert

Excellent point. I would love to see Mark Levin on this.


12 posted on 09/03/2011 9:58:12 AM PDT by Do Not Make Fun Of His Ears ("But resist, we much...we must...and we will much...about...that...be committed." - Al Sharpton)
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To: Do Not Make Fun Of His Ears

That’s OK. I’ll bet it’ll get posted 5 more times today.


13 posted on 09/03/2011 9:59:27 AM PDT by KingKongCobra
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To: KingKongCobra

LOL

I hope so. This needs to be shouted from the housetops.


14 posted on 09/03/2011 10:00:08 AM PDT by Do Not Make Fun Of His Ears ("But resist, we much...we must...and we will much...about...that...be committed." - Al Sharpton)
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To: bert
You are right....they should subpeona random loan officers who were trying to do the right thing.

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..........

15 posted on 09/03/2011 10:00:26 AM PDT by estrogen (2012 can't come soon enough)
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To: Jim Robinson

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!


16 posted on 09/03/2011 10:01:37 AM PDT by supremedoctrine
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To: Do Not Make Fun Of His Ears

HOW DARE YOU DO WHAT WE TOLD YOU TO DO!


17 posted on 09/03/2011 10:02:19 AM PDT by arderkrag (Georgia is God's Country. LOOKING FOR ROLEPLAYERS. Check Profile.)
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To: estrogen
Now the govt. which caused the problem is going after the banks......unbelievable. It is unbelievable yet in the lefts playbook.
18 posted on 09/03/2011 10:22:07 AM PDT by ColdOne (I miss my poochie... Tasha 2000~3/14/11)
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To: Do Not Make Fun Of His Ears

“(hugh and series)”

Nah! In Community Organizer Speak, It’s “mute and irrevalunt!”


19 posted on 09/03/2011 10:22:39 AM PDT by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
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To: Do Not Make Fun Of His Ears
Someone help me understand this.

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.

20 posted on 09/03/2011 10:27:12 AM PDT by NonValueAdded (So much stress was put on Bush's Fault that it finally let go, magnitude 6)
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To: Do Not Make Fun Of His Ears

Easy to understand - Obama takes his entire approach to the nation from his cultural icon, Vladimir Lenin.


21 posted on 09/03/2011 10:46:10 AM PDT by Jack Hammer
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To: Do Not Make Fun Of His Ears

Think extortion remember your dealing with Obama&Co.


22 posted on 09/03/2011 10:47:07 AM PDT by Vaduz
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To: richardtavor

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.


23 posted on 09/03/2011 10:49:07 AM PDT by ridesthemiles
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To: Do Not Make Fun Of His Ears
If anyone believes this is going somewhere I have a real nice bridge I would like to sell you. This is a very weak diversion to throw more fake shi! in our face to keep us occupied. GOING NOWHERE!!!! (Another communists standard plan of fake attack)
24 posted on 09/03/2011 10:50:29 AM PDT by Logical me
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To: estrogen

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.....”


25 posted on 09/03/2011 10:51:00 AM PDT by ridesthemiles
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To: 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

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

26 posted on 09/03/2011 10:52:26 AM PDT by tophat9000 (American is Barack Oaken)
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To: Do Not Make Fun Of His Ears

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


27 posted on 09/03/2011 11:06:03 AM PDT by ronnie raygun (V)
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To: Do Not Make Fun Of His Ears
This seem to be a cycle developing

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....

28 posted on 09/03/2011 11:06:38 AM PDT by tophat9000 (American is Barack Oaken)
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To: Do Not Make Fun Of His Ears

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.


29 posted on 09/03/2011 11:07:45 AM PDT by Marty62 (Marty60)
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To: estrogen
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

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.

30 posted on 09/03/2011 11:29:51 AM PDT by Siena Dreaming
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To: Do Not Make Fun Of His Ears
These same banks need to counter-sue the United States Government and name individuals who “threatened” the Banks if they [did not] give the loans to people who they knew could not pay them back, e.g. Janet (rino) Reno!
31 posted on 09/03/2011 11:37:51 AM PDT by paratrooper82 (We are kicking Ass in Afghanistan, soon we will be home to kick some more Asses in Congress!)
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To: Do Not Make Fun Of His Ears
Someone help me understand this.

Money Laundering, bribes, corruption

32 posted on 09/03/2011 1:47:46 PM PDT by hattend (If I wanted you dead, you'd be dead. - Cameron Connor)
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