U.S. set to sue big banks over bad mortgages

[spanone]

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, 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.

The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.

http://www.msnbc.msn.com/id/44366983/ns/business-us_business/#.TmBadKN5mSM

[Ohio Joe]

1. What they need is criminal trials. - nt

[Hubert Flottz]

3. I couldn't agree more.

Jail would work far better than fines that amount to nada, compared to what these thieves have stashed.

[WillyT]

2. K & R !!!

:kick:

[Lint Head]

4. These crooks raped the US economy and should be in prison.

They literally endangered our security and could have destroyed the financial integrity of the nation
.