WSJ
Per WaPo, the numbers/bank.FHFA Files Suits Against 17 Financial Firms Over Mortgage Bonds
By Maya Jackson Randall
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The U.S. federal regulator for mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) Friday filed lawsuits against 17 of the nation's largest banks over soured mortgage bonds, aiming to recoup billions of dollars in losses from the failed investments.
The Federal Housing Finance Agency is suing Bank of America Corp. (BAC), Citigroup Inc. (C), J.P. Morgan Chase & Co. (JPM); Goldman Sachs Group (GS) Deutsche Bank AG (DB, DBK.XE), General Electric Co. (GE) and others, according to a notice the agency released late Friday.
The agency, charged with conserving the assets of failed mortgage giants Fannie and Freddie, is accusing the large banks of violating federal securities law and other laws in the sale of residential private-label mortgage-backed securities.
The FHFA filed the first of the string of lawsuits in July against UBS AG (UBS, UBSN.VX), seeking $900 million in damages. UBS, in a statement at the time, promised to "vigorously" defend against all charges in court.
The FHFA issued 64 subpoenas last year to issuers and servicers of mortgage-backed securities in what has become one of the largest investigations to date of potential securities fraud from the mortgage boom and bust. The FHFA didn't disclose its targets at the time.
The inquiry has focused on the "private label" securities based on subprime and other risky loans that were originated by mortgage companies, packaged by Wall Street firms, and then sold to investors.
The suits come as the potential statute of limitations for the FHFA to take such actions draws near next week, according to people familiar with the matter. The FHFA placed Fannie and Freddie into conservatorship, a legal process similar to bankruptcy restructuring, three years ago next Wednesday.
-By Maya Jackson Randall, Dow Jones Newswires; 202-862-6687, maya.jackson-randall@dowjones.com
--Nick Timiraos of The Wall Street Journal contributed to this article.
WaPo
Brian "Brybry" Moynihan is going to have to do some serious backroom cocksucking to keep Bank of America alive IMO. Look forward to more layoffs and stealth capital raises.Name Amount in billions
Ally Financial, formerly GMAC 6
Bank of America 6
Barclays Bank 4.9
Citigroup 3.5
Countrywide Financial 26.6
Credit Suisse Holdings 14.1
Deutsche Bank 14.2
First Horizon National Corporation 0.883
General Electric Company 0.549
Goldman Sachs 11.1
HSBC North America Holdings 6.2
JPMorgan Chase 33
Merrill Lynch 24.853
Morgan Stanley 10.58
Nomura Holding America 2
The Royal Bank of Scotland 30.4
Société Générale 1.3
Total 196.165
-- Asuka
