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Freddie Mac (FMCC.OB) has sued Bank of America (BAC) JPMorgan (JPM), Citigroup (C) and 12 other...

Freddie Mac (FMCC.OB) has sued Bank of America (BAC) JPMorgan (JPM), Citigroup (C) and 12 other major banks for losses caused by the manipulation of the Libor rate. Freddie, which invested in mortgage bonds and swaps tied to U.S. dollar Libor, is seeking a whole gamut of damages for what it sees as fraud, antitrust violations and breach of contract. The FHFA has already calculated that Freddie and Fannie Mae lost $3B in total because of the Libor manipulation.
Comments (11)
  • rennaissanceman
    , contributor
    Comments (5) | Send Message
     
    Well that's a start. Now Freddi and Fanny need to sue the too big to fails for all the B paper they hung . A huge mortgage by back would be the next order of business . The funds from this action of course would be a huge cash injection into the housing market and a paid for stimulas .
    20 Mar 2013, 05:17 AM Reply Like
  • yestoeverything
    , contributor
    Comments (114) | Send Message
     
    "Freddie Mac (FMCC.OB) has sued Bank of America (BAC) JPMorgan (JPM), Citigroup (C) and 12 other major banks"

     

    "The FHFA has already calculated that Freddie and Fannie Mae lost $3B in total because of the Libor manipulation."

     

    Note the number of banks involved and the size of the suit. In short, this is a small time and not unexpected event.
    20 Mar 2013, 05:28 AM Reply Like
  • apppro
    , contributor
    Comments (779) | Send Message
     
    We are truly a Nation of lawyers suing anyone for our own past ignorance. What is wrong with all of us? "Hate is still hate!"

     

    Let's sing this administration's theme song: "Sue... sue... sue ya!" http://bit.ly/11ijpiV

     

    And does any of this remind you of how the insane Euro zone decided to BREAK THE RULE OF LAW to confiscate peoples' (mostly that mysterious middle class) SAVINGS in Cypress?

     

    Didn't the Supreme Court say that the government should NOT be prosecuting/persecuting companies for what a few people may or may not have done? How did that Arthur Anderson debacle work out for you?

     

    What is wrong with all of us?
    20 Mar 2013, 07:29 AM Reply Like
  • t_flanagan1
    , contributor
    Comment (1) | Send Message
     
    Is there a legal system left? Everything seems to be measured in someone's sense of moral indignation. What is the impact on Freddie and Fannie from the world central bank interest rate manipulations? Sue the Central Banks!
    20 Mar 2013, 08:53 AM Reply Like
  • SHANE06
    , contributor
    Comments (25) | Send Message
     
    Freddie and Fanny and the legislators that drove the scramble for home ownership at all costs should be the people sued.
    20 Mar 2013, 09:46 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4029) | Send Message
     
    The legal professions are the only real winners!
    20 Mar 2013, 09:48 AM Reply Like
  • debsty
    , contributor
    Comments (12) | Send Message
     
    Well you have got to love all this. Banks devouring each other and the investors and homeowners took the blunt of their abuses and fraud. PRICELESS. I'm sorry, but personally I hope the whole lot of them swallow themselves up and fade away. We need to go back to the basis , you apply for a home at a local home town bank or credit union, you get your home, and they sign your land records. You go to the bank and make your payments and know who owns your loan. No more servicers or private investors , or this other nonsense. A cease and desist needs to be put in place, that mortgage loans are no longer allowed to be traded as playing cards on Wall Street. Its time to take our lives and homes back from the predators who can't even play nice with each other. When it comes down to they perpetrate fraud on each other, you have to stop and ask yourself, why we haven't closed them all down .
    20 Mar 2013, 09:57 AM Reply Like
  • MadAsHellAnd
    , contributor
    Comments (207) | Send Message
     
    As this country has a useless and impotent Securities and Exchange Commission, and who knows what major malfunction Justice has, at least this is *something.*

     

    Nonchaos demands that hurt be delivered for bad acts - like sequestration, so painful to endure that a useful disincentive exists. Moral hazard, ya know?

     

    Disclosure: long C and BAC, yet happy to see them burn. I'm a useful hypocrite.
    20 Mar 2013, 11:02 AM Reply Like
  • cimabuehw
    , contributor
    Comment (1) | Send Message
     
    My preference in banks and life insurance companies are those NOT on the stock market. My private, local bank holds its own portfolio of mortgaged properties as well as making its own decisions regarding with whom it will do business; and my life insurance is mutual whole life (one of the few not taken out by greedy management that sold out to stock insurance companies). These "too big to fail" banks are way out of scale for a small business like mine and stock insurance companies actually put money into my mutual, whole life insurance policy. These are two areas where gambling is just not acceptable.
    20 Mar 2013, 12:47 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8340) | Send Message
     
    Freddie common has TRIPLED in less than a month.

     

    Wish I had purchased more!!
    20 Mar 2013, 01:31 PM Reply Like
  • benitus
    , contributor
    Comments (1911) | Send Message
     
    My Lord, God is great. Finally, there's some honest people in Freddie and Fannie who have the courage to defend the public interest, instead of being dumped with toxic assets all the time. With the Feds behind them, I think all those banks involved, including three of my stocks, will undoubtedly and quickly make a sizeable settlement (my guess is a combined total of at least $1 Billion, which averaged out to be less than $100million). Of course, F & F won't settle for chicken-feed, so a compromise will be a win-win situation for all, since the Feds also recognize that prolonged litigation will hurt the overall stock market and not just the banking sector. Here's to a quick settlement!!
    20 Mar 2013, 06:50 PM Reply Like
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