The New York Times scoops that the federal government is preparing to file suit against a dozen major banks in the coming days for their roles in 2008 financial crisis. The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, is alleging that the banks misrepresented the quality of mortgages bundled together as securities ? billing subprime loans as secure investments.
Among the banks set to be slapped with lawsuits according to the Times are: Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank. The agency filed suit against UBS earlier this year for $900 million in damages.
Fannie and Freddie lost more than $30 billion during the financial crisis ? at least in part due to the bad loans they bought.
The lawsuits are expected to be filed Friday, or else just after the holiday weekend.
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