Federal Government to Sue Banks

[Geor!]

NEW YORK (The Blaze/AP) — The 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.

Among the 17 institutions targeted by the lawsuits were Bank of America Corp., Citigroup Inc., JP Morgan Chase & Co., Goldman Sachs.

Home mortgage-backed securities were risky investments whose collapse after the real-estate bust helped fuel the financial crisis that erupted in late 2008.

The lawsuits were filed Friday by the Federal Housing Finance Agency, which oversees mortgage buyers Fannie Mae and Freddie Mac.

[mstng86]

Don't remind me of that 8% drop in BAC today.

[Geor!]

So Fannie and Freddie were major players in this entire thing, escape completely unscathed. Barney Frank pays no price. Chris Dodd pays no price. The government takes down major financial institutions, paving the way for a central bank.

[Denny]

Don't remind me of that 8% drop in BAC today.

At least you'll be OK with your gold and silver holdings.

[Denny]

So Fannie and Freddie were major players in this entire thing, escape completely unscathed. Barney Frank pays no price. Chris Dodd pays no price. The government takes down major financial institutions, paving the way for a central bank.

Welcome, brother... come on in.

[Gargamel]

So Fannie and Freddie were major players in this entire thing, escape completely unscathed. Barney Frank pays no price. Chris Dodd pays no price. The government takes down major financial institutions, paving the way for a central bank.

Pretty much....

[mstng86]

socialism.

Yup

[Geor!]

Welcome, brother... come on in.

Welcome?

[Denny]

Welcome?

You are talking like a mad man that has loose screws.

[Broncojohnny]

No better way to make the housing sector recover than to sue the banks into oblivion because Fannie and Freddie are incompetent. After Oblowhard gets voted out at the end of 2012, I think we'll get a Republican president who makes this quietly go away.

I also wonder why no one is suing Moody's or S&P for their ratings?

[Denny]

No better way to make the housing sector recover than to sue the banks into oblivion because Fannie and Freddie are incompetent. After Oblowhard gets voted out at the end of 2012, I think we'll get a Republican president who makes this quietly go away.

I also wonder why no one is suing Moody's or S&P for their ratings?

Because at the end of the day, all their ratings are, are opinions. Too much work to take that to court. Now, they can be investigated and deemed (or rated) incompetent or find kickbacks/ conflicts of interests, etc.

[8mpg]

Didnt the government force banks to do risky lending?

[Broncojohnny]

Because at the end of the day, all their ratings are, are opinions. Too much work to take that to court. Now, they can be investigated and deemed (or rated) incompetent or find kickbacks/ conflicts of interests, etc.

It is really no different than any other investment advice.

[Geor!]

Didnt the government force banks to do risky lending?

More like encouraged.

[Denny]

It is really no different than any other investment advice.

True, but several legal analysts have talked on this specific subject and no one wants to touch it.