FHA suing 13 big banks for $196B

C

CBOLAR

New member
Is this a joke? Give the banks billions to prevent the "end of the world" Then sue them a few years later?

http://www.blooraberg.com/news/2011-09-03/jpmorgan-bofa-among-17-banks-sued-by-fhfa-over-196-billion-in-securities.html
 
What money? TARP was paid back. This lawsuit is basically about fraud, stating that the loan portfolios were worse than what the banks led everyone to believe.

Bank of America is only in trouble, because it bought Countrywide...strangely enough, as a result of the forced hand the government put it under.

Sadly, it's easier to sue and claim ignorance, then for the government to accept some/any responsibility.
 
I find this kind of durab. There is a good chance this will hurt banks ability to lend on the one hand, and on the other hand Fannie and Freddie are pretty sophisticated buyers who saw the aRAB that showed just how good or bad a risk these securities were. There's a reasonable chance the only winner will be some lawyers, and the taxpayer has to bail out BoA again because they spent so much on legal fees and crap.
 
Personally, I hope it puts all of those banks out of business. A lessen learned late is still better than no lesson learned.

The share holders will take it farther up the ass than anyone else. Bankrupt enough of them on a large scale instead of bailing them out and perhaps future share holders will demand more effective oversight and accountability.

We all know that consumers and the politicians we elect are utterly impotent in standing up to our Wall Street overlorRAB.
 
Cool. What should be done now?

Historically, (2008), our leadership made the decision that the then current crop of our millionaires and billionaires should be allowed to remain millionaires and billionaires on the backs of thousandaires.

You certainly can't credibly argue that point.

Is it your position that the 401K thousandaires, (the people who do the actual work in our economy) blithely continue to go along with that?

The working class was taught a valuable lesson when the housing market imploded. #1, they should be an expert in Wall Street investment and #2, They should be proficient in at least 3 different career fielRAB. That is obviously only for those who want to, you know, survive on a day to day basis and still want to eat when they retire. (I know, that is asking a lot.)

The investor class on the other hand was taught, if you backed the wrong horse, GUESS WHAT???? YOU STILL WIN!!! Here is your bailout. (Oh and BTW, we are going to cut your taxes! We will let a different class pay that back later on.)
 
We would have been more and greatly fucked without the bailouts in the short term.

But there would have been far more stability, responsibility and accountability in the long term.

The long term solution would have been best.

Seriously, exactly nothing has changed as far as the billionaire investor is concerned. So they sit back in their Scrooge McDuck style vault, swim in their money and think all is well.

It is shameful that they were not at least as hurt as the millions of honest working Americans who lost pretty much everything.

I guess avoiding the price of avoiding the tag of collateral damage is at least for sale.
 
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