Federal Housing Finance Agency Statement on Recent Lawsuits Filed
“At the heart of the suits is FHFA’s conclusion that the actual mortgages backing many of the securities had characteristics that differed in a material way from what had been represented in securities filings. Under the securities laws at issue here, it does not matter how “big” or “sophisticated” a security purchaser is, the seller has a legal responsibility to accurately represent the characteristics of the loans backing the securities being sold.”
…
“Some have claimed that these suits will disrupt economic recovery, or endanger the targeted banks, or increase their cost of capital. While everyone is concerned with these important issues, the long-term stability and resilience of the nation’s financial system depends on investors being able to trust that the securities sold in this country adhere to applicable laws. We cannot overlook compliance with such requirements during periods of economic difficulty as they form the foundation for our nation’s financial system. Therefore, through these lawsuits, FHFA turns to the courts to adjudicate the violations that it has alleged in its complaints.”
…
At this time, it would be premature and potentially misleading to estimate the size of any potential recoveries. However, press reports that FHFA is seeking nearly $200 billion in damages or recoveries are excessive; such numbers reflect the original amount of such securities purchased, not the losses incurred or the potential recoveries at the end of this process. In particular, use of original unpaid principal balance as a measure of potential recoveries is incorrect as it does not equate with the losses incurred and it does not reflect the repayments of principal that have already occurred or the remaining value of the securities.
Full release below…
~
4closureFraud.org
~
Federal Housing Finance Agency Statement on Recent Lawsuits Filed
ALL OF THIS FOR THE BENEFIT OF THEIR FOREIGN CRIMINAL INVESTOR FRIENDS AROUND THE GLOBE AND…..NOTHING FOR MAINSTREET?….THIS IS A SLAP IN OUR FACES….WE BAILED THESE BASTARDS OUT!!!!!!
Wells fargo?
Just break up the Banks into many banks, none should have more than 100 Billion, The TBTF will disappear and we will even have more completion which translates into better service and better quality banking
If they don’t want to upset the markets by making the TBTF banks pay what they stole, they should criminally prosecute the people responsible. I, for one, would prefer to see these people go to jail (all of them, even though it will mean letting drug dealers and murderers out early, to make room for the influx people).
Poor banking industry maybe they arn’t to big to fail le them obey the law like we do and see.