Federal Government Sues Big Banks
Late Friday, the Federal Housing Finance Agency filed lawsuits against some of the world’s biggest banks. The seventeen suits alleged that the banks sold Fannie Mae and Freddie Mac nearly $200 billion in fraudulent mortgage investments. The U.S. government wants billions of dollars in compensation. It’s the setup for a brutal legal fight that could last years. The banks say the FHFA should have known better. The government says banks deliberately deceived it. A look at the role big banks played in the mortgage crisis and what it means for ongoing economic recovery.
contributing editor at Vanity Fair, opinion columnist for Bloomberg View; author of "Money and Power: How Goldman Sachs Came to Rule the World"; and former investment banker.
economics and finance reporter, Bloomberg News.
chairman and executive partner of Buckley Sandler law firm and CEO of Treliant Risk Advisers.