September 2nd, 2011
05:08 PM ET

Government sues 17 banks over risky mortgages

The Federal Housing Finance Agency, the conservator that oversees Fannie Mae and Freddie Mac, sued 17 financial firms Friday to recoup losses from risky mortgage loans.

The targets of the lawsuits include Bank of America, Citigroup, J.P. Morgan Chase, Goldman Sachs and even General Electric, among others.

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Filed under: Economy • Finance
soundoff (41 Responses)
  1. NL

    Their is enough blame to go all around with regards to subprime mortgages. To the goals pushed on Fannie or Freddie to raise home ownership by HUD. To those wanting the american dream and fulfilling it by getting into something the could not afford. To the investment comp who believed the rating agencies that told them they would be diversifying by having subprime loans, just as long as they would be in different parts of the country. To the insurer that insured that CDO and did not know it had 85% of sub mtg backed securities. To the gov for not regulating. To the broker that told the home buyer not to mention that he just lost his job. To the FIs that didn't care that home buyer lost his job because they would just turn around and sell that mtg. So is it just the banks fault?

    September 2, 2011 at 8:51 pm | Report abuse |
  2. N lo

    Their is enough blame to go all around with regards to subprime mortgages. To the goals pushed on Fannie or Freddie to raise home ownership by HUD. To those wanting the american dream and fulfilling it by getting into something the could not afford. To the investment comp who believed the rating agencies that told them they would be diversifying by having subprime loans, just as long as they would be in different parts of the country. To the insurer that insured that CDO and did not know it had 85% of sub mtg backed securities. To the gov for not regulating. To the broker that told the home buyer not to mention that he just lost his job. To the FIs that didn't care that home buyer lost his job because they would just turn around and sell that mtg. So is it just the banks fault?

    September 2, 2011 at 8:54 pm | Report abuse |
  3. A W Messenger

    This is the most insane thing I've ever heard. The banks were PRESSURED politically to make those risky loans against their better judgment and now the government has the "AUDACITY" to file suits against the banks they coerced into making the risky loans??? When does the blame game end??? When does SOMEBODY in Washington take ownership for all the stupid things they are doing up there??? Good grief!!!

    September 2, 2011 at 9:37 pm | Report abuse |
  4. Aston

    I believe the government (from what I understand) pushed the banks into the whole subprime mortgage thing. I also believe the banks could have said NO at the end of the day. If I owned a business and the government tried forcing me into something then I would say no and sue the government. A lot of mortgages could not be paid, because of the continued loss of middle class jobs over the years. It seems the government is trying to cover its tracks.

    September 2, 2011 at 11:07 pm | Report abuse |
  5. Fabian

    Freak u all

    September 2, 2011 at 11:20 pm | Report abuse |
  6. txnan6

    Wooo, Hooo. Get the word out. And don't hold your breath until collection. It sure would be great to put something back into the coffers, considering how much they cost this nation. You go Gov!

    September 2, 2011 at 11:51 pm | Report abuse |
  7. tmckee

    So let me get this straight. The govornment requires the banks to make risky loans and then sues them when they do that?

    September 3, 2011 at 12:01 am | Report abuse |
  8. leeintulsa

    I SUPPOSE that's something for the judge to decide. Not you and i in some babblefest. It's goin to court. Gobama.

    September 3, 2011 at 12:15 am | Report abuse |
    • San Jacinto

      I believe that is NOBAMA.

      September 3, 2011 at 10:14 am | Report abuse |
  9. You are our government.

    Don't sue them. Arrest them! and bring them to Justice. They make money hand-over-fist and can afford to play this game for years, and have been! What a charade. and you people fall for it, year after year. Stop allowing them to hide behind their personal corporate shelter. Make the fraudulent individual pay a fine and do some time. Come on! We have accounts with these banks. If you fault the corporations, they'll just take it out on us you idiots.

    September 3, 2011 at 6:49 am | Report abuse |
  10. You are our government.

    In China, fraud is considered to be a crime even punishable by death. Last year alone, China executed some 1,200 people, many of them fraudsters. No, I'm not saying China is better than you. What I'm saying is that fraud is soooo very pervasive here, that something drastic MUST be done if we are to have any hope of curtailing it. Anyone here agree?

    September 3, 2011 at 6:58 am | Report abuse |
  11. You are our government.

    [These two posts above were made by an old retired roughneck who goes by the name of *Philip* if yer lookin' for an excuse to ignore logic]

    September 3, 2011 at 7:03 am | Report abuse |
  12. RUFFNUTT (elf slayer & 15th lvl warrior & leader of the "golden knights of prosperity " )

    atleast the lawyers will have s steady job...

    September 3, 2011 at 8:34 am | Report abuse |
  13. Jazzzzzzzz

    Well Philip, who else is going to start a real conversation with real issues?
    RUFFLES, you are correct in your observation, sir lol

    September 3, 2011 at 8:46 am | Report abuse |
  14. Philipe de magnifico

    Gm Jazzy, RUFFNUTT. good to see you both. And good point RUF, the lawyers are our future lawmakers ya know. Do you think that our laws will be made stronger by these lawmakers of the future, or do you think that our laws will continue to erode away?

    September 3, 2011 at 9:11 am | Report abuse |
  15. RUFFNUTT (elf slayer & 15th lvl warrior & leader of the "golden knights of prosperity " )

    i think it wont matter cause everyone will go nutts in 2012...

    September 3, 2011 at 9:17 am | Report abuse |
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