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View Full Version : U.S. Government Sues 17 Banks for $200 Million



Conley
09-04-2011, 08:50 AM
Bank of America Corp. and JPMorgan Chase & Co. (JPM) were among 17 banks sued by the U.S. to recoup $196 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency, on behalf of Fannie Mae and Freddie Mac, filed 17 lawsuits yesterday in New York state and federal courts and in federal court in Connecticut. The FHFA accuses the banks of misleading Fannie Mae and Freddie Mac about the soundness of the mortgages underlying the securities.

“The loans had different and more risky characteristics than the descriptions contained in the marketing and sales materials provided to the enterprises for those securities,” the FHFA said in a statement.

FHFA is seeking to rescind the transactions plus other damages, including civil penalties and punitive damages in cases alleging misconduct.

http://www.bloomberg.com/news/2011-09-03/jpmorgan-bofa-among-17-banks-sued-by-fhfa-over-196-billion-in-securities.html

I'm actually ok with this. Too bad the rest of us can't sue too. Those banks new the mortgages were worthless.

MMC
09-04-2011, 10:49 AM
Didnt you put up an article on Obama taking attorney generals to Court for going after the banks?

Conley
09-04-2011, 10:53 AM
Didnt you put up an article on Obama taking attorney generals to Court for going after the banks?


Yeah not sure if it was me or someone else but I have read that Obama put a lot of pressure on the NY A.G. to drop his pursuit of the banks. He was considering criminal investigations I think and the Obama Admin wants the banks to pay a fine and then walk away from it. That's how I understand it. Personally I think it should be both penalties and jail. Like Mozillo, that cat made something like 250M and pays a 100M fine and walks away. Well he's still got 150M illegally and no jail time? How is that justice??

MMC
09-04-2011, 10:57 AM
Didnt you put up an article on Obama taking attorney generals to Court for going after the banks?


Yeah not sure if it was me or someone else but I have read that Obama put a lot of pressure on the NY A.G. to drop his pursuit of the banks. He was considering criminal investigations I think and the Obama Admin wants the banks to pay a fine and then walk away from it. That's how I understand it. Personally I think it should be both penalties and jail. Like Mozillo, that cat made something like 250M and pays a 100M fine and walks away. Well he's still got 150M illegally and no jail time? How is that justice??


Yeah I thought ya did.....plus if those Attorney Generals did that they would have to sign off not to pursue those cases. Which could be gross mismanagement and not even investigated.

Conley
09-04-2011, 11:01 AM
Didnt you put up an article on Obama taking attorney generals to Court for going after the banks?


Yeah not sure if it was me or someone else but I have read that Obama put a lot of pressure on the NY A.G. to drop his pursuit of the banks. He was considering criminal investigations I think and the Obama Admin wants the banks to pay a fine and then walk away from it. That's how I understand it. Personally I think it should be both penalties and jail. Like Mozillo, that cat made something like 250M and pays a 100M fine and walks away. Well he's still got 150M illegally and no jail time? How is that justice??


Yeah I thought ya did.....plus if those Attorney Generals did that they would have to sign off not to pursue those cases. Which could be gross mismanagement and not even investigated.


Right! And again the Feds would get all the money from these penalties and the states would be left holding the bag with no help...or the Feds would divide up the fees according to what they thought was best and not on the merit of the AG's cases.