U.S. Is Set to Sue a Dozen Big Banks Over Mortgages

Discussion in 'Economy' started by Ame®icano, Sep 2, 2011.

  1. Ame®icano
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    Ame®icano Gold Member

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    At first, government force banks to give loans to those who couldn't afford it while giving to banks warranties thru Fannie & Freddy. Now they suing them for quality of given mortgages.
    Market hasn't opened yet, but premarket doesn't look good at all.
     
  2. 8537
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    8537 Senior Member

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    No federal government office ever forced any bank to give a loan to anyone who couldn't afford it. Ever.

    That's why most of the toxic subprimes were offered by nondepository institutions outside the reach of the FDIC and the CRA.
     
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    Last edited: Sep 2, 2011
  3. Full-Auto
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    Full-Auto Gold Member

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    Not by law but by pressure.

    I suggest you listen to cuomo's rant on the topic. He bragged about it. Killing what you are trying to imply.

    Have a nice day.............................................
     
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  4. editec
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    editec Mr. Forgot-it-All

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    Its not the loans that threatened our national economy, it's the dubious BONDS that were bundled and then sold that really were the problem.

    Note that as yet not one bonds rating agency is called on the carpet for screwing up?
     
  5. 8537
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    8537 Senior Member

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    So, please explain how the vast majority of the most toxic subprimes were issued by firms outside the scope of the CRA, The FDIC and the regulatory structure of depository institutions?

    I suggest you think before you post.
     
  6. 8537
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    8537 Senior Member

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    If you want some indication of how far the reputations of ratings agencies have fallen, take a look at the price of a treasury in the days following our recent downgrade.
     
  7. Ame®icano
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    Ame®icano Gold Member

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    Oh sorry, government doesn't force anything, they call it encouraging...
     
  8. WillowTree
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    WillowTree Diamond Member

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    Sue means court, court means testimony. This should be interesting to say the least.
     
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  9. martybegan
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    martybegan Gold Member

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    This may be a very very bad idea. by suing the banks, they open Freddie Mac and Fannie Mae to legal scrutiny, as the banks have to be able to defend themselves. The discoveries will also extend to the regulatory agencies, the insurance companies, the rating companies, the real estate companies, and anyone else who had a hand in this.

    In the end only the lawyers are going to win.
     
  10. Full-Auto
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    Full-Auto Gold Member

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    Pressure from government.

    Without government pushing, they dont even enter the market.

    Again have a nice day.

    Yes pull your head out and think.........................
     

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