US to File Lawsuits Against a Dozen or More Big Banks as Early as Friday

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, may file suits seeking billions of dollars in damages against a dozen banks as early as Friday. The banks are being accused of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, according to the New York Times. Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank are among the banks to be included in the suit. All declined comment. A spokesman for Deutsche Bank, said, “We can't comment on a suit that we haven't seen and hasn't been filed yet.” Fannie Mae and Freddie Mac lost more than $30 billion, partly a result of the deals. Read the entire article here.