The US is planning to sue more than a dozen major banks for misrepresenting the quality of mortgages they sold during the housing bubble, the New York Times reports.
The Federal Housing Finance Agency(FHFA) will argue the banks should have known the securities were not sound. Bank of America, JPMorgan Chase and Goldman Sachs are to face action, according to the paper's sources, and suits could be filed as early as Friday. The FHFA - which oversees mortgage giants Fannie Mae and Freddie Mac - blames the banks for failing to perform adequate checks on the quality of mortgage securities they sold on to investors before the financial crisis in 2008. Fannie Mae and Freddie Mac lost more than $30bn (£18.5bn), partly because of the deals, and had to b...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes