Pallavi Gogoi and Eileen Aj Connelly, AP Business Writers, On Friday September 2, 2011, 8:00 pm EDT
NEW YORK (AP) -- 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.
http://finance.yahoo.com/news/Feds-sue- … 7.html?x=0
did big business sock it to the feds...or is it business as usual?
It is business as usual. The banks and the FED have been dealing with each other way, way back in the past. Freddie Mac & Fannie Mae loans shouldn't have existed in the first place. It's not easy to undo the damage, but suing makes it worst. Another round of taxpayers' money will go to the lawsuit(s). I suggest that the Federal Housing Agency stop any further loans and focus on programs that will afford the owners of the mortgages offer feasible payment options and keep their houses.
they are suing the Royal Bank of Scotland, I hope my adsense cheque clears before they take it all, lol.....jimmy
They are suing - looks good. How many indictments?
by Stacie L5 years ago
Hate your bank? Saturday is 'Bank Transfer Day'Big banks may have scrapped plans to charge fees for debit card use, but many customers are still angry and taking their money elsewhere.By MSN Money partner on Fri, Nov 4,...
by Gary Anderson8 years ago
The consumer is the catalyst of our economy. The consumer is tapped out by bad loans, too much credit, by a greedy banking system that wanted profits before responsibility. Option arm loans, credit card loans, and other...
by Lawretta Ikenga8 years ago
How long do you think this would last.I Can't take it any more. It is invading my job. it is turning the country up, side and down.
by Gary Anderson7 years ago
I must warn people from Australia with one Seeking Alpha article I just put out. Hope this will stand for your benefits, since I don't make any money on Seeking Alpha articles. I know some of you are from Australia.If...
by GL Bell7 years ago
Just saw this on morning news...If this is true than we have seen nothing yet...
by rhamson7 years ago
With the recent collapse of the insurance companies sub prime rates and government bail outs, can our capitalist based market system be trusted to right itself?
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.