Banks seek U.S. appeals court intervention in FHFA lawsuits

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Banks seek U.S. appeals court intervention in FHFA lawsuits

NEW YORK (Reuters) – Fifteen major banks sued by the Federal Housing Finance Agency over risky housing debt urged a U.S. appeals court on Wednesday to intervene, citing “gravely prejudicial” rulings by the trial judge coordinating the litigation.

In a joint petition filed with the 2nd U.S. Circuit Court of Appeals in New York, the banks said U.S. District Judge Denise Cote, had “systematically deprived” them of evidence to defend themselves, and issued rulings aimed at coercing settlements.

The banks, which include UBS AG , JPMorgan Chase & Co and Bank of America Corp , want to reverse several of Cote’s rulings, and get more access to information about what Fannie Mae and Freddie Mac knew about mortgage debt they bought prior to the 2008 financial crisis.

Fannie Mae and Freddie Mac, the nation’s two biggest mortgage finance companies, are regulated by the FHFA.

The unusual filing Wednesday was a sign of how serious the litigation had become. Analysts have said the banks face tens of billions of dollars in possible damages.

The lawsuits, filed in 2011, accuse the banks of violating securities laws by misleading the Fannie and Freddie about the quality of home loans packaged into $200 billion in securities.

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Comments
3 Responses to “Banks seek U.S. appeals court intervention in FHFA lawsuits”
  1. talktotennessee says:

    Yes, well shed a few tears if the penalty stings. Like the judge told my attorney, “the money is owed” and dismissed my case out of prejudice despite the deception, unfair add on penalties, bad paperwork, etc. Does not matter, the money is owed he said and the bank has a right to collect. Okay, big banking, the money is owed and does it really matter what Fannie and Freddie did or did not know? The tragic thing about all of this is that the banks and government are just fighting about who gets to keep the proceeds of one of the biggest scams in history. Nothing for the people or the “marks” that lost their homes, savings, or all their equity!
    Who is scamming who?

  2. TA says:

    Yeah, Its sad but ya know what? Like my Mom always put it and how I put it to my kids…..”You, made your own bed, now sleep in it ! ” Big Institutions made huge dollars compared to all the settlements they will need to dish out. They did the wrong thing, and now they are crying “boo-hoo” about having to give money back from where they “STOLE” it from. Whats even sadder than that, is, that these greedy pigs actually will argue the fact that they did nothing wrong haha…..what complete and uncontaminated arrogance !!

  3. NO NO NO NOOOOOOOOOOOOOO

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