Topic: Feds sue Big Banks
started by: alcitizens
Posted by alcitizens on Sep. 04 2011,1:41 pm
(CBS/AP) NEW YORK - The U.S. government has sued the nation's largest banks, along with a handful of other financial institutions and executives, for violating federal and state laws in the sale of home mortgage-backed securities.The Federal Housing Finance Agency, which oversees mortgage buyers Fannie Mae and Freddie Mac, filed the lawsuit Friday seeking seeks compensation for more than $41 billion of losses related to subprime mortgage bonds. The suit could hamper a broader government mortgage settlement with banks, Reuters reports.
Among the 17 institutions targeted by the lawsuits were Bank of America Corp., its Merrill Lynch unit, Citigroup Inc., JP Morgan Chase & Co., Goldman Sachs, Barclays and Nomura.
Home mortgage-backed securities were risky investments whose collapse after the real-estate bust helped fuel the financial crisis that erupted in late 2008.
< http://www.cbsnews.com/stories/2011/09/02/national/main20101185.shtml >
Remember -- the mortgage game changed in the years leading up to the crash. Instead of lending people money to buy a house and holding on to the loan, banks acted as middlemen, selling those loans to investors. With no skin in the game, they stopped worrying about whether the borrower could actually afford to make the payments, or if the house was worth the price.
Posted by nedkelly on Sep. 04 2011,3:11 pm
Hopfully some of the bank management people get prosecuted too!!!!! If the average Joe tried this type of thing he would already be serving Big Time...... 
....ned
Posted by pepi-lapew on Sep. 04 2011,3:34 pm
I think the banks should be able to sue the congress of the u.s. thay are the ones that made the banks give the loans to the deadbeats that bought more house than they could afford. thats ACORN for you. 
Posted by alcitizens on Sep. 04 2011,8:20 pm
They broke Federal and State Laws.. Congress created the laws that they violated.. 
Nail'em to a cross..
Posted by Self-Banished on Sep. 05 2011,6:30 am
(alcitizens @ Sep. 04 2011,8:20 pm)
QUOTE
They broke Federal and State Laws.. Congress created the laws that they violated..
Nail'em to a cross..
Nail'em to a cross..
Yeah, let's nationalize all the banks and have rhe Gov. eun them all
Posted by pepi-lapew on Sep. 05 2011,9:11 am
Freddie &Fannie bought the bad loans maybe they should have looked them over befoe they spent OUR hard earned cash. shoot all dumb a$$ at freddie and fannie instad of giving them BIG BONUS!!!!! 
Posted by alcitizens on Sep. 06 2011,3:00 am
(nedkelly @ Sep. 04 2011,3:11 pm)
QUOTE
Hopfully some of the bank management people get prosecuted too!!!!! If the average Joe tried this type of thing he would already be serving Big Time... ...ned
...nedNearly 500 arrests made in mortgage fraud probe
WASHINGTON: The Justice Department announced Thursday that investigators have made nearly 500 arrests since March in a major crackdown on mortgage fraud.
The nationwide initiative called Operation Stolen Dreams is the largest collective enforcement effort aimed at confronting the problem of mortgage fraud, Attorney General Eric Holder told a news conference. It involves 1,215 criminal defendants in cases that uncovered more than $2.3 billion in losses.
< http://www.ohio.com/news...188857 >