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Federal Agency Sues 17 Firms Including BoA, Goldman Over Sales of Risky Mortgage Investments

NEW YORK (AP) -- In a sweeping move, the government on Friday sued 17 financial firms, including the largest U.S. banks, for selling Fannie Mae and Freddie Mac billions of dollars worth of mortgage-backed securities that turned toxic when the housing market collapsed.

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

http://finance.yahoo.com/news/Feds-sue-biggest-US-banks-apf-...




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FInancials will tank the market tomorrow

In response to this action, fedgov will back off and the banks will only get a smack on the wrist, fedgov looks effective to the sheeple, financials will resume fleecing the public.

It's all a show.

=======
RON PAUL 2012

A political move. This move

A political move. This move has no teeth to it.

Even by free market standards, I feel the government has the right to regulate the banks....they are the ones that back the banks through the federal reserve, guaranteeing deposits.

If you don't want to be regulated, don't get the insurance.

Of course, the regulations the government has now just help the banks make more money, instead of preventing them from engaging in fraudatory and predatory behavior.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Dichotomy

How can we regulate or police the big banks and at the same time be responsible for their survival through bail outs? What if serious regulation led to their downfall and might that suggest that real crimes are being ignored to create a bigger problem?

Bank of America was pushing

for a settlement, and a couple states, despite intense pressure from Washington, were saying no. This could be the set up for a token penalty that will include exemption from prosecution.

Settlement, exemption and of

Settlement, exemption and of course a new Bail Out after all has been said and done BofA just got a 8 billion $ investment from China, looking for that welfare(bail out) infusion. Then they can go buy more Bonds and US Treasuries.

Clinton/Bush/Obama: Centrist losers with their hand held out looking for a Government Bail Out Program to keep their Dividend checks propped up with Artificial Stimulus "False Profit. Welfare for stock market Gamblers.

fireant's picture

Good point, but can a federal court prevent state prosecution?

I don't know.
I can't imagine state AGs not going after recording fees due the counties at minimum.

Undo what Wilson did

fireant's picture

The more I think about this the stinkier it gets.

Did Mr. B know about this? If he didn't, seems like like he'd be raising a stink himself. He and the prez have been cozy lately. Would Obozo drop this bomb on his rich buddy? The more likely scenario is Mr. B knew, and dealt accordingly. So what's up? Why would the administration risk throwing the financial system over the cliff? Planned chaos? The catalyst for more "stimulus"? It just doesn't add up.

Undo what Wilson did

The Audacity of Absurdity, by B. H. Obama

The 'gummit' is suing the banks it bailed out for mortgages that would have driven them bankrupt had the gummit not bailed them out. If gummit wins, gummit will bail these banks out so they can pay gummit. Gummit will of course pay all lawyers on both sides to run this circus for years. Banks threaten never to repay gummit TARP if they go bankrupt. Gummit cyclops scratches its pinhead.

Stocks: are not just for investing anymore

Back in the day, in another era, people handled things differently. Why don't we bring back the stocks? Set them up on wall street, right on display in the financial district. Each one convicted can spend a 8 hour day, for 30-120 days clamped into a wooden head and arm stock, in their very best tailored business suit of course. If there is any better deterrent for future banker rip offs feel free to post it.

http://en.wikipedia.org/wiki/Stocks

An astute person might wonder

why the Justice Department isn't indicting everyone at all these Wall Street banks for perpetrating the most massive fraud in all of world history?
In case anyone is not aware, these banks(and others) "bundled" huge numbers of toxic mortgages which they KNEW were toxic, and marketed them as "AAA securities" to other banks and investment houses around the world, fully knowing that they would blow up and cause the global financial disaster which resulted from it.

Every one of these bankers needs to be imprisoned for life, and AlL of their assets confiscated to pay for their crimes.

anyone up for some

cannibalism?

Bwahahah....I havent paid my

Bwahahah....I havent paid my mortgage in 4 years and sh*ttygroup is the holder of the mortgage. They have yet to provide the note on the house. I LOVE LIVING FOR FREE. F*ck you bankers.

Seriously?

How do you justify that? One thing government has been authorized to do is to enforce contracts. Who broke yours?

I assume they tried to foreclose because you did not pay your mortgage, and they can't find the note in order to get you out of the house.

That love of living "for free" off of others is how we got big government (and big banks) in the first place.

What do you think? http://consequeries.com/

So if I hold up my end of the

So if I hold up my end of the contract by paying my mortgage and they don't because they failed to create a paper note signed in blue ink which was a stipulation of the contract, I am wrong? And even if I were in your opinion, I would still do this to help destroy the banks business just for fun.

What's a few billion in fines, when they raked in trillions

I think they are preempting anyone else from suing them by agreeing to a hand slap & a token fine.

Zer(O)Bama gets to claim some inept political victory out of the deal.

____

"Take hold of the future or the future will take hold of you." -- Patrick Dixon

1st Obama the lawyer sued the banks to ease lending

Now he is suing because they did what he wanted. I hope this backfires on him and the blame is put on the “one” who instigated the banks’ bad lending practices.

Trickery

Its the wolf he is in a sheep's clothing is all.

This is dumb

they should sue themselves for creating an environment that lead to too big to fail monster banks buying each other out with cheep Fed sponsored leverage, rather than trying to "bust" them after the fact for basically doing what low rates inevitably cause business people to do: stupid things. How can the Fed, Fannie & Freddie work together to F up the free market and then start suing players for not having restraint? What did they expect would result from their bad policy? Were BofA and many other banks making stupid decisions? Yeah! Because of the artificial Fed created environment! This is stupid. This isn't capitalism. These banks should have failed, that would have been the proper punishment. The Fed should close its doors and the dept of justice should get the F out of the way. This is fake closure. It only satisfies the ignorant.

"I never submitted the whole system of my opinions to the creed of any party of men whatever in religion, in philosophy, in politics, or in anything else where I was capable of thinking for myself." - Thomas Jefferson

fireant's picture

Doesn't pass the smell test.

Political stunt?
I dunno, but it sure won't help bring down the "uncertainty factor" for the markets.

Undo what Wilson did

The same companies that got bailouts

yea, that makes sense. LOL

I smell a RAT....a BIG FAT ONE...

The irony is that there were so many BIG GOVERNMENT POLITICIANS that were responsible for this banking fraud that they OUGHT TO SUE THEMSELVES!!

Concerned Americans should

Concerned Americans should file a massive class-action suit against the government.

they should have just failed

this is all just political bs.

"I never submitted the whole system of my opinions to the creed of any party of men whatever in religion, in philosophy, in politics, or in anything else where I was capable of thinking for myself." - Thomas Jefferson

So Gov't takes $$$ from the

So Gov't takes $$$ from the people then gives it to the banks then sues the banks to get the $$$ back? Well looks like good news for lawyers and Gov't leeches.