NEW YORK (CNNMoney) — Dozens of banks are expected to soon face lawsuits from a federal housing agency accusing them of misrepresenting the value of mortgage-backed securities.
The news, reported by The New York Times and Wall Street Journal, comes a day after the Federal Reserve sanctioned Goldman Sachsover questionable practices in one of its former mortgage units.
The Federal Housing Finance Agency, which oversees Freddie Mac and Fannie Mae, is getting ready to sue Goldman Sachs (GS, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Bank of America (BAC, Fortune 500) and Deutsche Bank (DB) among others, according to the reports.
Comment by Adamantine:
The world truly needs God to rule. I post this article as proof of the stupidity of current world leaders.
These banks are probably guilty of all they will be accused of. Regardless these are the very same banks which the Government bailed out to the tune of billions. They are too big to fail and really too big to punish. What can the government do but sue for money to give to mortgage holders who were injured by the bad practices of the banks. The banks will pay these people with money which was provided by the government.
In all of this the government is the middleman costing billions in administrative and legal costs. It also according to some may have set up the system in such a way as to encourage the abuse perpetrated by the banks. One can probably counsel their children no better than to chose a career in government bureaucracy. Chose a mid level professional position that actually does the work for the political appointees and I suspect ones career is secure at least until the whole system fails. In the meantime one may live high on the hog claiming to do good for the nation against those evil bad banks.