- Jul 8, 2008
- Reaction score
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.
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.