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

Ame®icano

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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.
 

8537

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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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Full-Auto

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No federal government office ever forced any bank to give a loan to anyone. Ever.

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.............................................
 

editec

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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?
 

8537

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No federal government office ever forced any bank to give a loan to anyone. Ever.

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.............................................

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.
 

8537

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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?

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.
 
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Ame®icano

Ame®icano

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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.

Oh sorry, government doesn't force anything, they call it encouraging...
 

martybegan

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Ame®icano;4085321 said:
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.

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.
 

Full-Auto

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No federal government office ever forced any bank to give a loan to anyone. Ever.

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.............................................

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.

Pressure from government.

Without government pushing, they dont even enter the market.

Again have a nice day.

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

Sallow

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Finally.

These fucks wanna continue to play their chickenshit games?

Well it's going to cost.
 

Sallow

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No federal government office ever forced any bank to give a loan to anyone. Ever.

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.............................................

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.

You're wasting keystrokes here.
 

WillowTree

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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.............................................

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.

You're wasting keystrokes here.

You're wasting very good oxygen.
 

8537

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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.............................................

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.

Pressure from government.

Without government pushing, they dont even enter the market.

Again have a nice day.

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

What "pressure" did nondepository, non-CRA, FDIC regulated institutions face?
 
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Ame®icano

Ame®icano

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Ame®icano;4085321 said:
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.

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.

I think we have a right to know...

I don't think that original CRA was a problem, in fact that law was IMO a good thing, but Clinton's regulatory changes of 1995 that reduced redlining and gave new sub-prime authorizations to lenders. This article explain pretty much all... The Trillion-Dollar Bank Shakedown

Right after that, Fannie Mae added fuel to the fire by purchasing billions of loans thru "My Community Mortgage" pilot program that they (with Freddie) will sell as mortgage-backed securities on the open market. This article will help understand how it started... Pilot Lenders to Customize Affordable Products For Low- and Moderate-Income Borrowers. And then there is a take off...

[ame="http://www.youtube.com/watch?v=cEuiI2PbSWQ"]Government is not the solution to our problem, government is the problem." - Ronald Reagan[/ame]
 
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Ame®icano

Ame®icano

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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.

Pressure from government.

Without government pushing, they dont even enter the market.

Again have a nice day.

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

What "pressure" did nondepository, non-CRA, FDIC regulated institutions face?

Banks had to issue sub-prime mortgages, otherwise they were facing big fines. When banks still weren't giving loans, government said to banks, you give those loans, we guarantee those loans and buy them thru Fannie Mae.
 

8537

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Ame®icano;4085585 said:
Pressure from government.

Without government pushing, they dont even enter the market.

Again have a nice day.

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

What "pressure" did nondepository, non-CRA, FDIC regulated institutions face?

Banks had to issue sub-prime mortgages, otherwise they were facing big fines.

this is very interesting! Which banks were forced to issue subprimes? And why is it that banks (depository institutions) had such a small share of the market of toxic subprimes. while non-banks sold and repackaged the vast majority of these?

And who bought those packages of shit? Hint: FM and FM's share of the subprime repurchase market declined dramatically between 2001 and 2007.
 

uscitizen

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Robo signing?
Not maintaining a proper trail of mortgage ownership?


Only 20% of subprime mortgages were made by regulated finiancial institutions.
 

uscitizen

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Ame®icano;4085585 said:
What "pressure" did nondepository, non-CRA, FDIC regulated institutions face?

Banks had to issue sub-prime mortgages, otherwise they were facing big fines.

this is very interesting! Which banks were forced to issue subprimes? And why is it that banks (depository institutions) had such a small share of the market of toxic subprimes. while non-banks sold and repackaged the vast majority of these?

And who bought those packages of shit? Hint: FM and FM's share of the subprime repurchase market declined dramatically between 2001 and 2007.

Aww let them have their fantasies, some of us know the truth.
 

Dont Taz Me Bro

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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 is a patently false statement. You are either ignorant or lying. The federal government, as well as activist groups like ACORN, very much pressured banks to give mortgages to people who otherwise wouldn't qualify in order to boost minority home ownership. They were threatened with accusations of redlining if they didn't do it.

This does not mean the banks are without fault, of course, but the federal government caused the problem in the first place and they've done everything they can to point their fingers at everyone else just typical politicians.
 

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