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Mortgage Crisis Lawsuits Could Bring Hundreds Of Billions In Losses For Big Banks

Huffington Post: A verdict delivered earlier this month by a prominent federal judge heightens the prospect that the nation’s largest financial institutions will be forced to pay as much as $250 billion to compensate investors who bought bundles of fraudulently marketed mortgage-related securities, according to financial and legal experts.

The Feb. 5 decision in New York Southern District Court issued by Judge Jed. S. Rakoff involved only one relatively minor lender: Michigan-based Flagstar Bank. Rakoff found that Flagstar had failed to disclose the real risks of the mortgages it was selling, and he ordered the lender to pay $90 million to an aggrieved insurer, Assured Guaranty Municipal Corporation.

But experts zeroed in on Rakoff’s reasoning as a potentially damaging precedent for other lenders contending with scores of similar lawsuits, many involving fraudulent assurances claims from the investors who bought mortgage-backed securities during the U.S. housing boom.

read more http://www.huffingtonpost.com/2013/02/26/mortgage-crisis-law...



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Doesn't the statute of limitations run out in October???!

Yeah! Great! But... Doesn't the statute of limitations run out in October? I believe the ability to bring suit against these firms for losses and fraud is only five years. Since all the big crimes occurred in 2008, the window for opening a prosecution is narrowing like crazy.

AND THAT'S the whole point! Federal and state attorney generals have stonewalled this very necessary process on the basis that it would cause disruptions to a fragile recovery.

But who'd be surprised if these dirty swine were bribed to balk on these cases until it was too late to hand down justice?

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

Where does the money come from?

The Federal Reserve. This is nothing but a way to legally transfer money via banks from the Federal Reserve into the hands of the bureaucracy. It has no real consequences for the bank.

I agree with this ruling and the reported possible ramifications

of the bernanking industry getting hit with up to $250B in fines. That's justice enough for me...

with a couple tiny caveats. The money cannot come from the bank assets. It must come from the top person in each bank. If or when his ability to pay is exhausted, then the number two has to kick in the rest and so on down the line.

Oh, and the other one? The money should be split halfsies with the foreclosed on.

Other than those two simple little changes, this is justice enough for now.

Pfft.

The government and banksters pass money back and forth and pretend they are hurting each other.
I DESERVE "BAILED OUT."
We helped expose this fraud, put our home on the line and lost it without those banksters ever proving we owed them a dime. They could not produce a contract, a promissory note, nadda. But they got the house. Now the state is getting a check from the bank and it is supposed to be "justice." I was a victim of fraud. Me, I am the victim here. Real damages, had to move, had to fight court battles, "pain and suffering" and all.

Love or fear? Choose again with every breath.