Government Regulator Sues Wall Street Banks For Fraud In Subprime Mortgage Deals http://www.marketwatch.com/story/us-sues-big-banks-over-mortgage-losses-2011-09-02?link=MW_pulse
I wonder if warren buffet was aware of this when he 'invested' 5 billion in BofA Its suit against Bank of America focuses on $58 billion in residential mortgage-backed securities Fannie and Freddie purchased. That includes $6 billion purchased from Bank of America, $27 billion purchased from the big bankâs Countrywide unit and $25 billion bought by from its Merrill Lynch division.
Fanny and Freddie didn't do their due diligence!! What a surprise, irresponsibility from a Public Sector entity!! The Public Sector had laws in place that forced the bankers to loan to people that could not pay the money back, and they enforced them too. The lenders had to say "shove it sideways so far that it makes your head swim and gives you a migraine and have a nice day while you're at it" so they bundled those loans and sold them to Fannie and Freddie!! Brilliant!! Governments are melting down because they borrowed unbelievable amounts, now, instead of admitting that Socialism does not, once again, as always, ad nauseum, ad infinitum, indeed work, ever, [actually it works until you run out of other people's money to pay for it]... they are going after scapegoats [and some long coin, enough to pay the debt payment for about a day]!! Another surprise from the Public Sector!! No really, I'm surprised.. and we thought that only Private Sector Corporations were too big to fail!!