Feds sue big banks over sales of risky investments

1. 81

   Stacie Lposted 13 years ago

   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?

   replyreport
2. 68

   MonetteforJackposted 13 years ago

   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.

   replyreport
3. 73

   jimmythejockposted 13 years ago

   they are suing the Royal Bank of Scotland, I hope my adsense cheque clears before they take it all, lol.....jimmy

   replyreport
4. 60

   knolyourselfposted 13 years ago

   They are suing - looks good. How many indictments?
   Think nada.

   replyreport
   1. 71

      Hugh Williamsonposted 13 years agoin reply to this

      Good point. If these banks did enough wrong to get sued by the Feds, then why wouldn't those responsible be cuffed and given the 'ol the perp walk?

      replyreport