Bank of America., Goldman, Chase facing big U.S. suits: report

[marmar]

By William L. Watts, MarketWatch


WASHINGTON (MarketWatch) — A federal U.S. agency is ready to sue more than a dozen major banks, arguing that they misrepresented the quality of mortgage securities they put together and sold in the run-up to the bursting of the housing bubble, according to a published report.

The New York Times reported Friday that the Federal Housing Finance Agency, which oversees mortgage firms Fannie Mae and Freddie Mac, is expected to file the lawsuits in federal court Friday or Tuesday. The agency is expected to seek billions in compensation.

The suits are aimed at Bank of America Corp., Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Deutsche Bank AG and others, the report said, citing three unidentified individuals briefed on the matter.

Separately, Bank of America was asked by the Federal Reserve to show what measures it could take if conditions were to worsen for the bank, according to a report in The Wall Street Journal. The bank responded by saying it could issue tracking shares in Merrill Lynch, the brokerage giant it acquired during the height of the financial crisis. ..........(more)

The complete piece is at: http://www.marketwatch.com/story/us-said-ready-to-sue-big-banks-over-mortgages-2011-09-02?dist=beforebell

[Javaman]

1. While the "face" suits, let's see if 1) they actually get filed

and 2) anyone actually gets held accountable.

now let's all hold our breath.

[woo me with science]

2. What a joke. These suits will protect the banks.

They want us to be grateful for civil suits that will allow the banks to manage this all with accounting and then go back to business as usual. These suits will make absolutely certain that all faux "penalties" are civil/monetary and not criminal. Paying back money is a joke for these goons. We are just now beginning to see, through Wikileaks, the extent of the corruption involving the Federal Reserve and its banks.

Meanwhile, Schneiderman is out, and the White House's strategy of pressuring for settlements that will end criminal investigations and prosecutions of corrupt banks appears to be working.

What brilliant spin this is. It is an utterly predictable strategy of claiming to exact justice while actually setting up the game to avoid holding any of these thieves criminally accountable.

[sarcasmo]

3. Buffet wouldn't have invested billions in BOA if these suits had any chance of following through.