You turn to us for voices you won't hear anywhere else.

Sign up for Democracy Now!'s Daily Digest to get our latest headlines and stories delivered to your inbox every day.

Banks to Face Federal Suits over Mortgage Securities

HeadlineSep 02, 2011

The federal agency responsible for overseeing mortgage markets is reportedly set to file a lawsuit against more than a dozen big banks for misrepresenting mortgage securities they sold during the housing bubble that preceded the nation’s financial meltdown. According to the New York Times, the Federal Housing Finance Agency is preparing lawsuits against firms including Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank. The lawsuits will accuse the banks of packaging and selling mortgage securities at inflated prices ultimately borne by U.S. taxpayers when the economy crashed in late 2008.

The original content of this program is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. Please attribute legal copies of this work to democracynow.org. Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.

Non-commercial news needs your support

We rely on contributions from our viewers and listeners to do our work.
Please do your part today.
Make a donation
Top