Article

2011-09-03 Economy

US sues 17 big banks over financial-crisis losses

[Straits Times] US authorities on Friday sued 17 top US and foreign banks over 'billions of dollars' in losses on mortgage-backed securities that plunged in value in the 2008 financial crisis.

In court filings the Federal Housing Finance Agency alleged that in some cases the lenders committed fraud in selling nearly US$190 billion (S$229 billion) in securities to mortgage giants Fannie Mae and Freddie Mac, which had to be bailed out by the government.

US firms targeted in the suits included Bank of America (BOA), Goldman Sachs, Citigroup, JPMorgan Chase, Morgan Stanley, General Electric, Ally Financial and First Horizon.

The foreign banks were Deutsche Bank, HSBC, Credit Suisse, Barclays, Nomura, the Royal Bank of Scotland and Societe Generale.

Posted by Fred 2011-09-03 00:00|| || Front Page|| [5 views ] Top

#1 Note that at least some of these received billions in stimulus funds. 'bumbles tries to take with one hand that which he gave with the other.

The more movement of funds the more cracks open that baksheesh can drop through to the chosen.

Posted by AlanC 2011-09-03 09:07|| 2011-09-03 09:07|| Front Page Top

#2 That's why QE3 soon to save Buffett end of September I think. Too big to fail again. Even if we were taxed all our income we still couldn't pay off our debt. Where did Buffett get around $60 million to invest. I guarantee he has a mountain of debt. The governments solution is always print more money. Why?, they can, just like China is doing. They say it will take over a trillion to bail out Europe's banks shortly. So the dollar is here to stay. I am just an average person so I could have made some mistakes here. Sounds to me like a big card game being played.

Posted by Dale 2011-09-03 11:16|| 2011-09-03 11:16|| Front Page Top

#3 But wasn't it the government that was telling the banks to make all those bad loans? And then just what the hell were the banks supposed to do?

Posted by Abu Uluque 2011-09-03 13:28|| 2011-09-03 13:28|| Front Page Top

#4 O turns on his contributions buddies. It was past presidents and the congress that enabled this financial disaster with forcing banks to make loans to bad risks. Then it was Fannie and Freddie bundled the bad mortgages, then regulators turned a blind eye while these sh*t sandwiches were sold as securities---worldwide. The inverted pyramid of bad debt. Metastable financial equilibrium on steroids.

Posted by Alaska Paul 2011-09-03 13:48|| 2011-09-03 13:48|| Front Page Top

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