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A potential new legal front is opened against the banks as the U.S. sues Bank of America (BAC),...

A potential new legal front is opened against the banks as the U.S. sues Bank of America (BAC), seeking at least $1B in damages for allegedly misrepresenting the quality of home loans it (through its Countrywide unit) sold to Fannie and Freddie.
Comments (18)
  • atsfwr
    , contributor
    Comments (15) | Send Message
     
    I hope this goes away after the election.
    24 Oct 2012, 01:12 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    Can the government sue itself for the 70 to 100 Billion in green job subsidies that it selectively gave away (lost) under the crony capitalism stimulus program?
    24 Oct 2012, 01:43 PM Reply Like
  • James Myung
    , contributor
    Comments (251) | Send Message
     
    Why don't US sue Federal Reserve Bank for wiping out middle class. Special Interest charge payable to US government and offset US's debt.
    24 Oct 2012, 01:43 PM Reply Like
  • onewhatsbeendonebefore
    , contributor
    Comments (145) | Send Message
     
    How many more coffin nails can BoA take.

     

    Its mortgage book is full of holes. Its customer base is showing signs of frayed edges.

     

    Its overseas operations are looking weak.

     

    RIP ?

     

    No R I anger frustration and doom.
    24 Oct 2012, 02:44 PM Reply Like
  • ccfaulk
    , contributor
    Comments (24) | Send Message
     
    This was a failure of the legislative branch of the Govt not the banks. They would be charged with crimes and not simply sued if they did not follow the law.
    24 Oct 2012, 02:45 PM Reply Like
  • Daniel Radakovich
    , contributor
    Comments (547) | Send Message
     
    read the history books sir.
    25 Oct 2012, 12:02 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2482) | Send Message
     
    Probably just adding a lawsuit to try to strengthen Fannie's other legal claims. It's a non-event.
    24 Oct 2012, 03:09 PM Reply Like
  • samithree
    , contributor
    Comments (34) | Send Message
     
    After the citizens of the US sue Freddie and Fannie - including all its management for the last 10 years - for fraud, abuse of power, self-serving conflicting interest, theft, complicity, racketeering, and a few more - then maybe they've got a leg to stand on in suing B of A.
    It takes some brass as Bill Clinton recently said......
    24 Oct 2012, 03:19 PM Reply Like
  • frosen
    , contributor
    Comments (2) | Send Message
     
    What's interesting is that the B of A was forced to take Merrill Lynch--and this is the reward they get? They should spin off their mortgage operations--and then they would be a very solid company.
    The question of the day though is---why does Angelo Mozilo have any assets left?
    24 Oct 2012, 03:45 PM Reply Like
  • frosen
    , contributor
    Comments (2) | Send Message
     
    B of A was forced to take Merrill Lynch and this is the thanks they get? They should spin their home lending division off and then the company would be very solid and highly profitable.
    Question of the day--why does Angelo Mozilo have any personal assets left?
    24 Oct 2012, 03:47 PM Reply Like
  • rdullom
    , contributor
    Comments (16) | Send Message
     
    Is it not also the responsibility of the management of FNMA, GNMA,etc to analyze the loan portfolios that were purchased to assure that they fit their criteria? Also, didn't these portfolios receive investment grade rating from S&P and Moody's? Are they also being sued by the gov't?
    24 Oct 2012, 04:02 PM Reply Like
  • SHANE06
    , contributor
    Comments (25) | Send Message
     
    What a disgrace...how can any Bank ever carry out their business and mandate with confidence. Can't the Govt instead work on the economy and jobs
    24 Oct 2012, 06:45 PM Reply Like
  • Alpozin
    , contributor
    Comments (17) | Send Message
     
    Uncle Sam is just waiting for these bank to strengthen their capital and come back to profit. as soon as that happened, we'll see more and more lawsuit coming in for the next 10 years.
    24 Oct 2012, 07:28 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2482) | Send Message
     
    Statues of limitations will expire on illegal or allegedly illegal activity from the financial crisis around 2014.
    24 Oct 2012, 07:34 PM Reply Like
  • Ponchovilla
    , contributor
    Comments (308) | Send Message
     
    As far a banks go this $1B or so seems to be a regular drag on business. There are so many holes regarding Henry Paulson's decisions as Sec of Treasury to protect Wall St and the bond holders that this type of tailwind drag with last for 5 more years
    24 Oct 2012, 09:03 PM Reply Like
  • RALPHSCHAUSS
    , contributor
    Comments (58) | Send Message
     
    all the US regulators including the DOJ, the FDIC/Sheila Bair, the OCC, the Fed Home Loan Board, the SEC, the CFTC, Alan Greenspan, the state bank regulatots and DA's like Cuomo and company and eveybody and his brother was totally asleep in the build up to the crisis and thereafter- so the bureaucrats can>'t think of anything more intelligent than to stall and kill a weak economy with a wall of litigation, it is only truly great times for one group = the litigation lawyers and others riding on this bandwaggon but it will snuff out the real economy, and no bureaucrat ever get's sued for being asleep and not taking action in time before a crisis hits
    Frankfurt, Germany
    25 Oct 2012, 10:45 AM Reply Like
  • atsfwr
    , contributor
    Comments (15) | Send Message
     
    Franklin Raines CEO of Fannie " FANNIE's accounting scandal erupted in 2004, when a regulator accused the company of manipulating results, partly in an effort to maximize bonuses" make him give back his bonse and send him to jail.
    Have the Gov' sue Fannie and Freddie
    25 Oct 2012, 10:49 AM Reply Like
  • ccfaulk
    , contributor
    Comments (24) | Send Message
     
    The lawsuit will be dropped Jan 5th anyway.
    25 Oct 2012, 11:38 AM Reply Like
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