U.S. sues big banks over mortgage losses I find this absolutely hilarious. Are you really trying to tell me, it took this long for a federal agency to realize the banks lied to us? Maybe I should work for the government, I could have told them that!
I guess now rep`s are going to have to quit say F&F are getting away scott free... But they probably won`t, cause you know, they don`t like to change...
This is just about forcing banks to reform old loans. The lawsuit is bank execs protection from stock holders. They can pawn the cost of refinance off on the government. Watch and see if this is not how it plays out. Just like the whole BofA, Buffet/Obama bailout. Do you think that the administration would really seek damages against their boy at GE?
Why not, Ben Bernanky was the head of Goldman Sacks, and Tim Ghitner was deep into City Group. These two clowns along with Sommers, Barny Frank, and the other finance committee turds, allowed the banks and investment bankers to run themselves with no government regulations to stop them from taking advantage of commiting fraud and deception. That is why republicand and t-baggers who do not like "big government" getting involved with private buisness, continue to vote for politicians who rant about government regulations. FYI: if you like no government regulation, just invest in IRAs and other private retirement accounts, as well as life insurance and 401k plans. They are not regulated by government. See how that turns out.
I think they should countersue FNMA et. al. for encouraging bad lending practices. Especially Barney Frank and Chuck Schumer.
I don't believe the lawsuit has merit. It ignores that Fannie Mae and Freddie Mac were responsible for their decisions to purchase these securities. Why didn't the investment advisors at Fannie Mae and Freddie Mac investigate the securities before purchasing them? Isn't it a basic axiom in business of "Buyer beware" when it comes to purchasing anything? I see a failure of the buyer (Fannie Mae and Freddie Mac) to properly investigate the securities before purchasing them. This is similiar to the idiots that took out ARM loans without knowing or that knowingly ignored what the cap on interest and monthly payments were for the loan.
Did they? Most of this relates to ARM loans where virtually no qualifying was required. The individuals that took out loans that they couldn't afford was the primary problem. It isn't the bank's responsibility to determine what the individual can afford to pay. That is the individual's responsibility. I've made numerous real estate purchases and I because of an excellent credit rating I "qualify" for at least twice the amount I could actually afford to actually repay. I would be stupid to take out a loan that I couldn't repay but more than a million individuals did.
Great! Bank lawyers will drag Mae/Mac's complicity out of the shadows. I would take great pleasure in personally delivering the subpeona's to Frank, Dodd and Raines.
BUSTED: Bank Of America Admits To SEC That It Repeatedly Lied About Debt And Leverage Levels You do know what put Lehman Brothers out of business don't ya? It wasn't themselves, it wasn't the government, it was the stock market. Once traders realized what they had on their books, traders shorted their stock into oblivion. Once a public company's stock is worthless, so are they. The only reason why Citi and BOA are around, is because of Tarp. Citi's stock was at 97 cents a share at one point. If this were a true free market, both would be out of business, because traders would have put them out of business. But but but, they are 'too big to fail' On a side note: This is how the dollar will become worthless. Traders will short the dollar into oblivion. Once traders around the world truly understand the house of cards the government has built, traders from around the world will start shorting the dollar. Even an 800lb gorilla (US Gov) cant stop a freight train.
What a pathetic excuse for these thieves! I can't believe you espouse such an attitude unless it is your JOB to make excused for banks! It is the banks FIDUCIARY RESPONSIBILITY to determine what the maximum an individual can afford to pay back and that they are LIKELY to do so, and VERIFY every bit of it! Why would we need bankers if they simply handed out money (and took their bonus out of the total) to simply anyone who asked????
The government coerces banks into making bad mortgages and then sues them to cover up for Fannie Mae and Freddie Mac. Amazing.
The government NEVER "coerced" banks into making bad mortgages. The only thing the federal regulations demanded was that banks loan to EVERYONE equally. Bank "Redlining" (drawing a red line around poor and minority neighborhoods and not making ANY loans in those areas, regardless of how good the applicant or property were) and discriminatory practices towards minorities had the banks rejecting minority applicants with good jobs and good credit, and doing things like cutting the ACTUAL appraised values in HALF in other areas. It is the major banks who needed mortgages to make their leveraged toxic derivatives, who wrote the "liar loans", and the other super-toxic loans they wanted.