US Preparing To Sue Banks For Billions
 

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.


Read more: http://www.businessinsider.com/us-pr...#ixzz1WlDQQdSx

provide a bailout, then sue?

Sure, normal pattern ...

Just like : sell arms to dictator, then invade ....

I dont know, I just dont see this happening. The big banks have so much influence over the government (both parties) I can't see how it would move forward

It's already happened. It's going to happen again.

This has to be quoted.

If they did that they would plummet the stock market

..Provide TRILLIONS then sue for BILLIONS?

:error:error:error

It's politics, everything is for show.

Is this a new concept? lol (sarcasm)

It's about fucking time they do something with the scumbag banking system.

:1orglaugh

LOLLLLLLLLLLLLLL

no shit this is fucking hilarious

I love that quote you have in your sig :)

:1orglaugh:1orglaugh:1orglaugh

What holiday is that?

Pure comedy.

Then lets turn right back around later this year or 2012 and bail them out again.

Ony the us government is powerfull enough to attack the biggest banks and win.

Labor day

I think I have a better theory...this is actually far too obvious. US government = Wall Street.
Wall street = banks. Banks = FED...isn't perhaps election coming in the USA? I mean choosing between douche and turd? Just think: who Americans blame for the recession? The Santa? David Duchovny? No, they blame the banks! This is another fucking political brainwash. In Europe we call it "election sausage". In other words they say "Vote for us because we're planning to punish those responsible for the economic situation"

It's all part of the government plan unveiled on south park:

1) Collect Underpants
2) ?
3) Profit!

bankers will cover their asses, i dont worry too much

How did banks prevent people from owning homes? The whole meltdown was the direct result of loaning money for homes to people who should have never qualified for a loan to begin with. The total net effect was that more people were able to purchase homes.

I totally agree. I met many fantastic people in the States lately and I know that Americans have LOTS of spirit and that's why I can't understand why you let those corrupted governments manipulate with people for such a long time. I can only hope that changes will be for better and that's what I wish you all.

What is the fucking point of this? It's going to punish the mortgage industry - long over due - but it's not going to help the average joe who lost their house.

At this point, they are little more than collateral damage in a much bigger fight. The system itself needs fixing.

Besides, the average Joe who lost his house also bears some responsibility for losing his house. No one is forced to buy a home.

The bankers will be fine and will pass on lawsuit losses to their customers, as usual.

This is the tragedy of people who think companies should be punished for any reason. Ultimately, the consumer pays for it. That's how biz works. When you increase the cost of production/expenses, the price of the product increases. Increase corporate taxes, the price of the product increases and so on.

Wouldn't it be easier and quicker to just fine them? Tell them to give back all the bailout money? THey're using up taxpayer dollars to sue the companies that acted with their permission to screw over the taxpayers, and then they shored the banks up with more taxpayer dollars.. now they're suing? Who are they kidding?

This is right. It's just a gimmick to get more money in their hands. The consumers are going to be the only ones losing.

Way to go US for moving so quickly on this. We're all safed!!!1

:1orglaugh Are you fucking nuts? So banks should just be allowed to do whatever the fuck they want?
No.
What really needs to happen is that banks are held accountable and by law cannot pass the bullshit onto the customer, the losses must be absorbed internally.

And if they do try to pass the shit onto the consumer they should be fined double the amount and so forth.

The banking system is out of control to the detriment of the world and needs to be completely re-defined.

On the consumer end, if a person knowingly tries to buy a McMansion he cannot afford he should be equally pimp slapped hard.

wake me up when it's for TRILLIONS

I don't think he is saying it should be allowed. I think that he is saying it is the unfortunate reality of things, and I agree. I disagree with your assessment that consumers will not pay the price, they always do. Take a look at the salaries of any CEOs or upper-level management. They have not changed, they have only increased.

The price gets passed to the consumer. Always. No clue what the answer is.

The govt is just suing themselves this is all for show

No, I realized after I posted that - that it was poorly phrased. I mean the general idea of peoples thinking to punish companies for any reason most often means they are going to end up paying for it themselves. It's hard to hold a company responsible for something. It's easy to hold individuals liable. I was meaning to say that's a more practical angle of attack and something that you be looked at as a long term cure to such behaviors.

Exactly what I was thinking. Provide bailout - sue - win massive judgement - provide bailout... ad nauseum.

Should have just let them all fail.

yes BUT lawyers have much more...

I do agree that right now for instance it would be easy for the banks to turn around and simply fuck their customers a little more to make that money back.

But here's the thing- they are already fucking their customers. Every week it's some new charge on debit cards or credit cards etc and they can do whatever the hell they want.

What needs to happen is a fundamental change in laws regarding banks and how they operate. They have far too much control and wield too much power behind the world stage and the results have been catastrophic.

Yes...but impossible. This was a well designed scenario, a huge ponzi scheme with the failsafe mechanism being that the banks were "too big to fail." That was the fear meme and it worked perfectly. The Enron insanity should have woken up people but as it turns out everyone was doing it.

99% of the people will always end up paying for the 1%'s fuck ups, whether those fuck ups are intentional or not.

It's not as simple as that. And most of the bailout money have been paid back, it's a loan program not a giveaway. The GM bailout was also succesfull.

However, some of the most toxic assets are now owned by the gov. Also, the FED has been lending them trillions on low interest loan to keep the system going. This is really bad, and a long term moral hazard.

I think to fix the balance, they need to criminaly prosecute the execs responsible and make an example of them. This is very hard to do, as the procedures were industry standard. The ratings agencies should be the first too go, they are still rating subprime AAAs to this day.

Business is business. Any business can charge what they want for services. You have the option of finding another bank to give your business to.

The "banks" were not the problem. Bad loans were made possible primarily by being able to hide them in mortgage backed securities using various strategies. Loans are sold. You can't sell shitty loans if you don't have buyers for them. You have buyers for them when they are no longer being identified as bad loans. Banks make these kinds of loans in accordance with their ability to sell them.

The short version is that the entire financial system failed. It wasn't just "banks". Banks weren't the ones giving shit investments AAA investment ratings, or figuring out how to better and better hide bad loans and bad debt in complex financial instruments that the creators themselves had a hard time explaining.

In total over 130 execs are named.

Here are those named in the FHFA's lawsuit against BofA:
GEORGE C. CARP
ROBERT CARUSO
GEORGE E. ELLISON
ADAM D.GLASSNER
DANIEL B. GOODWIN
JULIANA JOHNSON
AASHISH KAMAT
MICHAEL J. KULA
JAMES H. LUTHER
WILLIAM L. MAXWELL
MARK I. RYAN
ANTOINE SCHETRITT

Those named in the lawsuit against Goldman:
PETER C.ABERG
HOWARD S. ALTARESC
ROBERT J. CHRISTIE
KEVIN GASVODA
MICHELLE GILL
DAVID J. ROSENBLUM
JONATHAN S. SOBEL
DANIEL L.SPARKS
MARK WEISS

Those named in the lawsuit against Citi:
SUSAN MILLS
RANDALL COSTA
SCOTT FREIDENRICH
RICHARDA. ISENBERG
MARK I. TSESARSKY
PETER PATRICOLA
JEFFREY PERLOWITZ
EVELYN ECHEVARRI

Those named in the lawsuit against Morgan Stanley:
GAIL P. MCDONNELL
HOWARD HUBLER
CRAIG S. PHILLIPS
ALEXANDER C. FRANK
DAVID R. WARREN
JOHN E. WESTERFIELD
STEVEN S. STERN

Those named in the lawsuit against Barclays:
MICHAEL WADE
JOHN CARROLL
PAUL MENEFEE

Those named in the lawsuit against Countrywide:
JOSHUA ADLER
THOMAS H. BOONE
JEFFREY P. GROGIN
RANJIT KRIPALANI
STANFORD KURLAND
THOMAS KEITH MCLAUGHLIN
JENNIFER S. SANDEFUR
ERIC SIERACKI
DAVID A. SPECTOR

Those named in the lawsuit against Credit Suisse:
ANDREW A. KIMURA
JEFFREY A. ALTABEF
EVELYN ECHEVARRIA
MICHAEL A. MARRIOTT
ZEV KINDLER
JOHN P. GRAHAM
THOMAS E. SIEGLER
THOMAS ZINGALLI
CARLOS ONIS
STEVEN L. KANTOR
JOSEPH M. DONOVAN
JULIANA JOHNSON
GREG RICHTER

Those named in the lawsuit against Deutsche Bank
DOUGLAS K. JOHNSON
EVELYN ECHEVARRIA
JULIANA C. JOHNSON

Those named in the lawsuit against JPMorgan
DAVID M. DUZYK
LOUIS SCHIOPPO, JR.
CHRISTINE E. COLE
EDWIN F. MCMICHAEL
WILLIAM A. KING
BRIAN BERNARD
MATTHEW E. PERKINS
JOSEPH T. JURKOWSKI, JR.
SAMUEL L. MOLINARO, JR.
THOMAS F. MARANO
KIM LUTTHANS
KATHERINE GARNIEWSKI
JEFFREY MAYER
JEFFREY L. VERSCHLEISER
MICHAEL B. NIERENBERG
RICHARD CAREAGA
DAVID BECK
DIANE NOVAK
THOMAS GREEN
ROLLAND JURGENS
THOMAS G. LEHMANN
STEPHEN FORTUNATO
DONALD WILHELM
MICHAEL J. KULA
CRAIG S. DAVIS
MARC K. MALONE
MICHAEL L. PARKER
MEGAN M. DAVIDSON
DAVID H. ZIELKE
THOMAS W. CASEY
JOHN F. ROBINSON
KEITH JOHNSON
SUZANNE KRAHLING
LARRY BREITBARTH
hahahahahahaAL I. DOMINGO
TROY A. GOTSCHALL
ART DEN HEYER
STEPHEN LOBO

Those named in the lawsuit against Merrill Lynch:
MATTHEW WHALEN
BRIAN T. SULLIVAN
MICHAEL M. MCGOVERN
DONALD J. PUGLISI
PAUL PARK
DONALD C. HAN

Those named in the lawsuit against Nomura
DAVID FINDLAY
JOHN MCCARTHY
JOHN P. GRAHAM
NATHAN GORIN
N. DANTE LAROCCA

Those named in the lawsuit against RBS
JOSEPH N. WALSH III
CAROL P MATHIS
ROBERT J MCGINNIS
JOHN C ANDERSON
JAMES ESPOSITO

Those names in the lawsuit against SOCGEN
ARNAUD DENIS
ABNER FIGUEROA
TONY TUSI
ORLANDO FIGUEROA

I dont get it, i guess you have to watch cartoons to understand this?