Can "Too Big To Fail" Now Fail? ETF News Alert

The big shocker on Friday was the $196 Billion lawsuit by the Federal Housing Agency against 17 banks for allegedly misleading Fannie Mae and Freddie Mac regarding mortgage backed securities bought by Fannie and Freddie. The list is a stunning marquee of the biggest names in banking including Bank of America, JP Morgan, Barclays, Citigroup, Countrywide Financial, Deutsche Bank, Goldman Sachs, Merrill Lynch and Morgan Stanley. Of course, many of these illustrious names were deemed “too big to fail” at the outset of the financial crisis and so were bailed out by the American taxpayer, including Fannie and Freddie who got $140 Billion to keep them from imploding. So now the question must be, after rescuing the “too big to fails” will the government now be the cause of one or more of these mega banks to fail as a result of this recent action