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Feds sue banks over bad securities - FSU Voice - Fayetteville State University
In a bold move on Sept. 2, the Federal Housing Finance agency filed lawsuits against 17 banks for their alleged practice of fraudulently selling close to $200 billion in securities linked to subprime mortgages.
Several of the banks are major American financial institutions, who some economists say were nearly single-handedly responsible 2008's recession. Bank of America, Merrill Lynch & Co., JPMorgan Chase & Co., and Goldman Sachs & Co., were among the banks listed in the FHFA's legal filings report.
A subprime mortgage is "a type of loan granted to individuals [or couples] with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages," according to Investopedia.com. These mortgages often have higher interest rates than traditional loans of the same type. And most commonly, they're adjustable rate mortgages, in which many individuals with poor credit do not understand.
Investopedia continues, "Many lenders were more liberal in granting these loans from 2004 to 2006 as a result of lower interest rates and high capital liquidity. Lenders sought additional profits through these higher risk loans, and they charged interest rates above prime in order to compensate for the additional risk they assumed. Consequently, once the rate of subprime mortgage foreclosures skyrocketed, many lenders experienced extreme financial difficulties, and even bankruptcy."
The 17 banks are being accused of participating in this unethical lending practice.
Any questions?It took 12 years for the liberals to get the congress back (except the 01-02 senate when J Jeffers jumped ship)
8 years of solid lies about GWB in conjunction with the Credit bubble bursting (which was no fault of GWB) to create the perfect storm
In 4 years the house was lost
In Nov the white house will be lost
If I was left wing liberal I would not be mad at Rush or any conservative for that matter
YOUR LEADERSHIP FAILED
Feds sue banks over bad securities - FSU Voice - Fayetteville State University
In a bold move on Sept. 2, the Federal Housing Finance agency filed lawsuits against 17 banks for their alleged practice of fraudulently selling close to $200 billion in securities linked to subprime mortgages.
Several of the banks are major American financial institutions, who some economists say were nearly single-handedly responsible 2008's recession. Bank of America, Merrill Lynch & Co., JPMorgan Chase & Co., and Goldman Sachs & Co., were among the banks listed in the FHFA's legal filings report.
A subprime mortgage is "a type of loan granted to individuals [or couples] with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages," according to Investopedia.com. These mortgages often have higher interest rates than traditional loans of the same type. And most commonly, they're adjustable rate mortgages, in which many individuals with poor credit do not understand.
Investopedia continues, "Many lenders were more liberal in granting these loans from 2004 to 2006 as a result of lower interest rates and high capital liquidity. Lenders sought additional profits through these higher risk loans, and they charged interest rates above prime in order to compensate for the additional risk they assumed. Consequently, once the rate of subprime mortgage foreclosures skyrocketed, many lenders experienced extreme financial difficulties, and even bankruptcy."
The 17 banks are being accused of participating in this unethical lending practice.
Un ethical?
Or illegal?
and GS does not loan money, there a Hedge fund, not a commercial bank
That has nothing to do with the problem and what the Dems did when they finally got power
Real estate values remain high
None of these events take place
Any questions?It took 12 years for the liberals to get the congress back (except the 01-02 senate when J Jeffers jumped ship)
8 years of solid lies about GWB in conjunction with the Credit bubble bursting (which was no fault of GWB) to create the perfect storm
In 4 years the house was lost
In Nov the white house will be lost
If I was left wing liberal I would not be mad at Rush or any conservative for that matter
YOUR LEADERSHIP FAILED
[ame=http://www.youtube.com/watch?v=kNqQx7sjoS8]Home Ownership and President Bush - YouTube[/ame]
Bush and his SEC created this mess with their lack of implimentation of exsisting laws and creating new ways for the banks to LIE about what they were selling.
so many Rs have NO idea about which they speak
what are you talking about?
Gramm Leech was repealed took place in the late 90s
What does of any of that have to do with the events of 209 thru 2010?
The credit bubble was no-ones fault but those who borrowed more than they could afford
and
Those who lent out more than they could get back
No one else s
It is against the law to lie on a credit app
It is against the law to loan money based on a lie on a credit app
That is called bank fraud
What does any of this have to do with +5 million jobs fewer than 08 and deficits in excess of 1 trillion dollars each year?
GRAMM Leach was never repealed was it hack?
what are you talking about?
Gramm Leech was repealed took place in the late 90s
What does of any of that have to do with the events of 209 thru 2010?
The credit bubble was no-ones fault but those who borrowed more than they could afford
and
Those who lent out more than they could get back
No one else s
It is against the law to lie on a credit app
It is against the law to loan money based on a lie on a credit app
That is called bank fraud
What does any of this have to do with +5 million jobs fewer than 08 and deficits in excess of 1 trillion dollars each year?
why did you not have the class to admitt you were wrong?
