12.09.2011 - US housing regulator sues the banks
The Federal Housing Finance Agency (FHFA) has “taken the most sweeping action to date” by a US federal regulator in connection with the mortgage meltdown, says Nick Timiraos in The Wall Street Journal. It is suing 17 banks, including Goldman Sachs, Bank of America, RBS, HSBC and Barclays, for allegedly mis-selling $200bn of mortgage-backed securities. Dodgy securities were sold to government-backed mortgage giants Freddie Mac and Fannie Mae without adequate risk disclosure, according to the suit. Their value slumped during the credit crisis..............................................Full Article: Source
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