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TOPIC: Government_goes_after_financial_firms_over_mortgage_losses
Created by: sa_interracialcpl
Original Starting post for this thread:
NEW YORK (CNNMoney) -- The federal agency overseeing Fannie Mae and Freddie Mac filed lawsuits Friday against 17 financial institutions in an attempt to recover losses from risky mortgage investments.

The lawsuits were filed against many of the nation's largest Wall Street and financial firms, including Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase.

In the complaints, the Federal Housing Finance Agency contends the institutions misrepresented the quality of the investments' underlying loans.

"Based on our review, FHFA alleges that the loans had different and more risky characteristics than the descriptions contained in the marketing and sales materials provided to the enterprises for those securities," the agency said in a press release.

Fannie Mae and Freddie Mac, which were taken into conservatorship by the federal government during the 2008 financial crisis, are the largest sources of funding for the U.S. housing market.

They buy mortgages from lenders and either hold them on their books or bundle them into securities. The companies also have bought mortgage-backed securities issued by other institutions.

The agency, which says it is charged with protecting the mortgage finance companies' assets on behalf of taxpayers, is seeking damages and penalties.

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The patriotic chants 'Deregulation' were heard at the RNC in Y2008 by Republican candidates McCain/Palin. Following the lead of the the Bush/Cheney administration, who had 8 years to do something significant about the mortgage industry, but instead passed it onto the next administration, the Mavericks wanted even more deregulation.

Idiotic political analysis results in blame-shifting the economic crisis onto Obama for a small part he may have played in an investment game ignored by the Bush/Cheney administration and its attorneys general.

**ZZ**

Minneapolis MN
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Why do some people in here post things that only display their utter ignorance about the subject?

(SA, I'm not talking about you).

Belle Chasse LA
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They were compelling to Federal Banking laws sponsored by Barny Frank, Chris Dod and such that required them to make sub prime loans. Obama when he was a lawyer for ACORN even won a lawsuit against these very same banks for not making the sub prime loans! So the banks were forced to do it! I hope they call Obama to the stand himself and ask him if was not the lawyer who sued to force the banks into making sub prime loans! What is going to be his defense? I was only trying to do good. I did not know I was going to bankrupt the country. The banks should have put up a better defense.

Tulare CA
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Don't see anything coming of this. Spend even more money we don't have to go after banks they saved?

I bet the 2012 elections has everything to do with this. This is a huge waste of time, effort and money!!

Obama trying to save face and this is all he has in his pocket of tricks.. HAHAHAA

San Antonio TX
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NEW YORK (CNNMoney) -- The federal agency overseeing Fannie Mae and Freddie Mac filed lawsuits Friday against 17 financial institutions in an attempt to recover losses from risky mortgage investments.

The lawsuits were filed against many of the nation's largest Wall Street and financial firms, including Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase.

In the complaints, the Federal Housing Finance Agency contends the institutions misrepresented the quality of the investments' underlying loans.

"Based on our review, FHFA alleges that the loans had different and more risky characteristics than the descriptions contained in the marketing and sales materials provided to the enterprises for those securities," the agency said in a press release.

Fannie Mae and Freddie Mac, which were taken into conservatorship by the federal government during the 2008 financial crisis, are the largest sources of funding for the U.S. housing market.

They buy mortgages from lenders and either hold them on their books or bundle them into securities. The companies also have bought mortgage-backed securities issued by other institutions.

The agency, which says it is charged with protecting the mortgage finance companies' assets on behalf of taxpayers, is seeking damages and penalties.

San Antonio TX
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(8428 posts)
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TOPIC: Government goes after financial firms over mortgage losses
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