Federal Judge Says FHFA Cases Against Banks Can Proceed

Federal judge says FHFA cases against banks can proceed

NEW YORK, Nov 28 (Reuters) – A U.S. judge kept alive a federal regulator’s lawsuits against big banks including Credit Suisse Group AG and Bank of America Corp over allegations they misled Fannie Mae and Freddie Mac into purchasing billions of dollars worth of risky mortgage debt.

The rulings, by U.S. District Judge Denise Cote in Manhattan, were the latest in a series of decisions allowing the Federal Housing Finance Agency to proceed with lawsuits against banks it blames for losses incurred by Fannie and Freddie.

The FHFA, which regulates Fannie and Freddie, last year sued 18 banks over the housing finance giants’ losses on more than $200 billion in mortgage-backed securities. The lawsuits accuse the banks of misrepresenting the quality of the loans underlying the securities and violating U.S. securities laws.

The banks have denied the regulator’s allegations and argued they should be dismissed. Among the arguments by the defendants is a contention that the lawsuits were filed after the statute of limitations had expired.

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Comments
2 Responses to “Federal Judge Says FHFA Cases Against Banks Can Proceed”
  1. stripes says:

    Well if the banks misled Fannie Mae and Freddie Mac that still doesn’t change the fact the GSE’S multiple pledged notes which they admitted to doing so. Notes the GSE’S never held legal title to and were fraudulently purchasing credit slips to property that we held legal title to. So the GSE’S bought back credit slips they insured for the banks for pennies on the dollar. Not only was this fraud done without our knowledge, but they can’t legally buy back credit slips (crap) they insured but never owned and sell investments in parts of it. It is like saying insurance companies can own you and can sell investments in parts of you because they insure you though you actually pay the whole insurance policy in advance and the premiums they collect keep the ponzi scheme going on long enough to keep the crap game alive until it all craps out . Yeah it all sounds nuts because it is all nuts and the insurance companies probably do that.

  2. neidermeyer says:

    Obama needs $$$$$ … , after this he will start taxing your 401k’s.

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