Friday, September 2, 2011

NYT: US to File $30 Billion Suit Against a Dozen US Banks

In news that is sure to thrill Bix Weir and all those who hate JP Morgan and Goldman Sachs, the NYT has broken news that the US is set to file a $30 Billion suit against a dozen US banks over mortgage fraud.
Wynter Benton might not need silver derivatives imploding to see JPM trading below $20 by Oct.

The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.

The Federal Housing Finance Agency suits will argue that banks failed to perform due diligence and missed evidence that borrowers’ incomes were inflated or falsified.

The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.
The suits stem from subpoenas the finance agency issued to banks a year ago. If the case is not filed Friday, they said, it will come Tuesday, shortly before a deadline expires for the housing agency to file claims.
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