Friday, September 02, 2011

Federal Government Suing Banks

I suspect we'll hear a lot of hollering from the banks, threatening of fees to consumers, blah, blah, blah.
In the complaints, the Federal Housing Finance Agency contends the institutions misrepresented the quality of the investments' underlying loans. "Based on our review, FHFA alleges that the loans had different and more risky characteristics than the descriptions contained in the marketing and sales materials provided to the enterprises for those securities," the agency said in a press release. Fannie Mae and Freddie Mac, which were taken into conservatorship by the federal government during the 2008 financial crisis, are the largest sources of funding for the U.S. housing market. Read the rest at CNN