Saturday, September 3

Which Banks Being Sued by FHFA?

Stock Trading - Which Banks are Being Sued by FHFA?

See also the video below by Professor William H Black entitled the "The Great American Bank Robbery"

The FHFA (Federal Housing Finance Agency), acting as conservator for Fannie Mae and Freddie Mac in the USA, has filed lawsuits against seventeen financial institutions totalling $196 billlion, as well as some of their officers and unaffiliated lead underwriters, alleging violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities to the Enterprises.

Banks being sued
  • Ally Financial Inc. f/k/a GMAC, LLC ($6 billion)
  • Bank of America Corporation ($5 billion)
  • Barclays Bank PLC ($4.9 billion)
  • Citigroup, Inc ($3.5 billion)
  • Countrywide Financial Corporation ($26.6 billion, Countrywide was bought by Bank of America)
  • Credit Suisse Holdings (USA), Inc
  • Deutsche Bank AG ($14.2 billion)
  • First Horizon National Corporation ($883 million)
  • General Electric Company ($549 million)
  • Goldman Sachs & Co. ($11.1 billion)
  • HSBC North America Holdings, Inc. ($6.2 billion)
  • JPMorgan Chase & Co. ($33 billion)
  • Merrill Lynch & Co. / First Franklin Financial Corp. ($24.8 billion)
  • Morgan Stanley
  • Nomura Holding America Inc. ($2 billion)
  • The Royal Bank of Scotland Group PLC ($30.4 billion)
  • Société Générale ($1.3 billion)
US bank stocks fell sharply as the news emerged. Bank of America fell 8.3%, JP Morgan Chase fell 4.6%, Citigroup fell 5.3%, Goldman fell 4.5% and Morgan Stanley fell 5.7%. No doubt UK and German banks will fall on Monday. Is this what all the fuss was about when people were talking about rumors re. certain banks and why the banks have fallen sharply lately?