Fannie Mae and Freddie Mac were left holding the bag for $millions over the default of government guaranteed loans when RepubliCorp aided Banksters in dropping the bottom out of the housing market in late 2008. I have long objected to taxpayers footing the bill for the effects of the actions of corporate criminals. The Banksters and RepubliCorp should be made to pay instead.
The U.S. as soon as Friday could file suit against a dozen big banks over improper mortgage securities, according to a news report.
The New York Times reported Friday that the Federal Housing Finance Agency would bring the suit in coming days against a number of banks the regulator believes misrepresented the quality of mortgage securities sold to Fannie Mae and Freddie Mac.
The FHFA oversees Fannie and Freddie, which were nearly shuttered after the financial meltdown in 2008, which was driven by mortgage securities. The U.S. economy continues to struggle from the effects of that crisis, with home prices in many parts of the country continuing to fall.
The report in the Times said the suit would be aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among other big banks. It said the U.S. will argue that these banks failed to conduct due diligence over whether borrowers had the incomes to back up the loans on which the mortgage securities were based… [emphasis added]
Inserted from <The Hill>
I consider this excellent news. Banksters and RepubliCorp should cover the damages from their own crimes. For Banksters, at least this is a small start. To make RepubliCorp pay, we’ll have to wait until November, 2012.
16 Responses to “FHFA to Sue Banksters”
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This is just a tactic that will be given as soon as the banks and other Wall Street firms began to donate the correct amounts to Obama’s campaign again. If they don’t come back around there is only hundreds of millions to lose while they attorney’s for the banks get wealthier fighting in court this government intrusion caused by “lack of government oversight.” Remember Greenspan had no qualms and believed in the honesty of the banks leadership. Chairman of the FEd at the time basically approved this fraud.
Mark, the Banksters never supported Obama, until it was obvious that he was going to win, and will not support him again until it becomes equally obvious.
that is given up on
They should be in jail for tanking the economy, but what do I know?
Welcome Blues! 🙂
Are you related to Blue? 😉
Another attempt to placate the millions of outraged people. This is what happens when the avaricious banks and realty companies dole out loans to people who have no credit rating; no job; no source of income and are just greedy enough to take advantage of the me, me, me attitude so prevalent in humanity. The Lenders didn’t expect them to repay because they knew they couldn’t. Hence they flipped over the mortgages to the banksters, or to the Chinese; made a profit and the buyers foreclosed and made more profit through resale and ultimately by being able to claim a tax write off through faulted mortgages and loans which gives them a tax write-off and break. The Chinese increased their leverage over America which is just as good as a tax write-off to these Triad Complicit Politicos. This is the basis of the sub prime mortgage scheme in simple terms. Screw everyone as long as King Profit is served and is able to present the appropriate tribute of suffering and hopelessness on the altar of its god Mammon.
It is these very same banks and institutions that got TARP money. Now these very same banks are being audited because of mortgage backdating; and attempting to foreclose on people whose mortgage is paid up to date or paid in full. That my friends is fraud. Talk about a den of thieves and scoundrels and just plain sociopathic behavior.
I can’t really see this going anywhere. Fannie and Freddie were both children of FDR and Nixon respectively; a communist and a fascist no less. Both of these programs should have been shut down or at least brought under regulations that would allow them the semblance to function properly.
Canadians shouldn’t get too uppity either. You had thirty years of Trudeau; the ultimate whore who couldn’t make up his mind as to whether to be a Nazi or a Communist. Trudeau ended up saddling a wonderful country with an entire gamut of socialist programs that redistributed the wealth but due to the lack of proper regulations allowed anyone and everyone to scam a necessary program such as EI or social assistance. Of course now we are saddled with the ultimate Corporatist Bush Light and his partner, Li’l Dick; friends to every Oil man and Bankster to emerge out of the shadows to play Let’s Make A Deal. Hell, they bought into the Arab Spring which is just the Corporatists’ attempt to open up closed Arab markets; and the Banksters attempts to destroy Arab Shariah banking which doesn’t charge Usury. Usury by the way is permissible by Jews lending to non Jews; as it is to Muslims lending to non Muslims. Usury is not permissible when lending same to same. The International Banksters Cartel wishes to change that so everybody can be saddled with indentured servitude through loans and service fees.
If you really and truly want to bring change about in America here’s some suggestions and they are merely that. Many talk about shutting down the FED and I think that’s a good idea. JFK was assassinated for attempting to correct the Golden Goose program that has funneled trillions of dollars into international coffers; money that really belongs to the US taxpayer. Even Woodrow Wilson rued the day he signed on with the Rothschild cartel. Give America control over its finances. I wonder what would happen if three hundred million Americans refused to pay their taxes? Would they have enough FEMA prisons?
Secondly, revoke and revise all the loopholes that companies like Berkshire-Hathaway; banks and hedge funds have. If Warren Buffet truly wants to tax the rich let’s begin with his firm that manages his billions. He pays no tax and neither do the others like him. Income tax should be gradated appropriately on what you make in Gross before any write-off or loophole can be invoked. If you make three million for instance then you should pay the fair tax share into the system.
Thirdly, get rid of all the lobbyists for the international firms and corporations and foreign governments. America needs to become the Republic it once was; minus all the Freemasons of course. LOL
Fourthly, introduce trade and tariffs on all international goods imported into the country. The American worker can not compete with products produced in countries like China through the use of slave labor. The average worker there makes less in a day than most union workers do per hour. I think unions have served their purpose. They no longer serve the working man; they serve the upper 2% of union management and financiers. If you price yourself out of the market then you won’t have any jobs which is exactly what happened. It’s simple economics; globalization aside mind you. A manufacturing firm will go where it can produce cheaply and manifest ultimate profit. Yes, you can argue that the cost will be passed along to the consumer. What happens if the consumers tells you what you can do with your product because they either can’t afford it or feel it’s not worth it?
Do you really need that new car; that forty room mansion; that new Rolex for example? No you don’t. It’s nice to look at but as the old saying goes, “You lust and you do not have so you covet”. That leads to people utilizing criminal or questionable means to acquire such trinkets. When you have amassed your wealth; your temporal power and your time on earth has passed, someone else spends your money. It was all an illusion. You end up finding out that reality is far different than what you thought and that which you coveted lead you to immoral and unethical life choices for which you are now sent back in a lesser life station to relearn that which you failed to learn this time. Or if you’re really bad there’s the ultimate disintegration and redistribution of your spirit, consciousness and energy through a multidimensional black hole where it will be put to better use than what you did with it. I’m not religious by the way.
In closing the crux of the matter is that no matter who you put into power, that power will ultimately corrupt them. Look at Rick Perry; a man who came from a blue collar farm background. Didn’t he take nicely to the conveniences and perks of office once in power? How about Clinton, a man who supposedly came from poor white Arkansas trash? How about the lizard Gore whose house uses more power in a month than does the average thirty American homes?
It’s the rock star syndrome. These guys are like Bono and Geldoff. They always travel in limos and jets trying to raise money for this or that starving nation or cause which through the IMF policies and the NGOs such as USAID, arm both camps to create a violent insurgency so that IMF and UN policies can be invoked. Did the G20 solve anything at all Canada or was it merely our turn so that we could get a nice pat on the head and a great recommendation through Moodys or Standard and Poor?
The Rolling Bones and the last Euro U2 tour left such a monstrous and negative carbon impact. Hey it was for a worthy cause. Wouldn’t it be nice if they put a few of their own billions into these projects instead of spending the bulk of the generous sheople’s money raised on bookings; agents; travel and media not to mention the taxes? I could expound upon John Lennon’s hypocrisy but that’s already been done by others.
Our politicians think they are rock stars and that we owe them. Politicians have forgotten that they work for us and not the international financiers and banksters.
The sad fact is this: You can change the system which would be a great first step; but until you change human nature and its myopic, materialistic values you will always have the five % of the populace fleecing and enslaving the rest of it.
Welcome, Michael. 🙂
Interesting rant. Roosevelt, a Communist? Nixon, a Nazi? You do see things in extremes, don’t you?
I just hope something comes of it and it’s not just more smoke and mirrors.
As do I.
It’s campaign time.
Tell them what they want to hear.
Tom, I don’t buy it. This has been in preparation for over a year.
I actually read this article in the NY Times, along with most of the “Comment” stream that followed (more than 600). A fair number of knowledgeable New Yorkers were demanding perp walks and forfeiture of assets for the perpetrators of these crimes, punishments I wholly support. And no, I don’t believe this is simply a campaign tactic. As TomCat points out, this has been in the works for almost a year and it’s damned time our Justice Dept. got serious about prosecuting these thieves and crooks. This step, coupled with the DOJ’s suit to block the AT&T – T-Mobile merger make me ALMOST forgive Obama for blocking the EPA from enforcing air pollution standards — what the hell is that? So it costs industry money to be in compliance. These are the companies that are reporting multi-billion dollar profits each quarter, while paying no U.S. taxes.
Ann, Sadly this is not DOJ. It’s a civil action.
I have been in Canadian banking for 40 years, at least half of that time working in mortgages, and 15 years actually approving mortgages at a senior level. Because of the affect on my employers, my clients, and Canada Mortgage and Housing Corp (CMHC — a Crown Corporation and Canada’s version of Fanny Mae and Freddie Mac), I was loathe to lie on an application or application investigation. I was well known for high ethical standards. In my last position, I worked with independent mortgage brokers and became known as the ‘fraud queen’ — I could often sniff out fraud, sometimes almost miraculously so some of my workmates said, and our Corporate Security regularly came to me to help investigate mortgage fraud. With CMHC, if a mortgage went bad, they do detailed reviews of the original application and if there is evidence of ‘mal practice’ or extreme negligence on the part of the bank, the mortgage is given back to the bank to deal with. Any loss belongs to the bank involved in those cases. I don’t see why it shouldn’t be the same in the US. Although our systems and laws are different, the principles are the same. By being complicit in fraud, not only should the bank get the debt back, but it should face criminal charges as well. It is one thing to get caught up unknowingly in a fraud scheme, and there are some good ones out there, but quite another to turn a blind eye and hope nobody notices.
When the US mortgage debacle opened up, some of us here just shook our heads because we couldn’t see the same level of problems happening here because of the different systems. However there certainly was some spill over to our markets. We started looking at our policies. Where the required downpayment had gone from 10% of the purchase price down to 5% and then down to 0% in some cases, it returned to 5% for CMHC insured mortgages. Some other more liberal policies were also tightened up. In Canada, if a client has 20% down or more, then it is seldom insured with CMHC and is totally the responsibility of the bank.
Lynn, there is a key difference between our systems. Yours was set up and is maintained to protect the public through oversight. Republicans have set our up to protect the Banksters from oversight.
OK, then I guess it’s time to start demanding change, especially when you consider the global ramifications this triggered. I know globally there are new capital requirements etc, but damn, someone has to stand up to the American government and the Republicans. The republicans are nothing more than thugs and bullies. It isn’t fair that one economy can put everyone else into a tailspin. I remember years ago, the Hunt brothers started manipulating the silver markets for their own benefit. I saw some of the fallout from that relatively minor debacle by today’s standards — some were financially ruined. Better shut up, can feel the BP going up.