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Friday, September 02, 2011

BREAKING NEWS: U.S. Sues Banks Over Mortgages

Federal government sues 17 banks over risky mortgages
From Fox News


Anonymous said...

So the government forces the banks to make very risky mortgages via teh community reinvestment act, then when the mortgages go bad, they sue the banks?
Just like the mobsters that run Chicago!

Don't believe me? Look it up on Wikipedia. Here's a quote from the changes Clinton signed into law.

"During one of the Congressional hearings addressing the proposed changes in 1995, William A. Niskanen, chair of the Cato Institute, criticized both the 1993 and 1994 sets of proposals for political favoritism in allocating credit, for micromanagement by regulators and for the lack of assurances that banks would not be expected to operate at a loss to achieve CRA compliance. He predicted the proposed changes would be very costly to the economy and the banking system in general. Niskanen believed that the primary long term effect would be an artificial contraction of the banking system. Niskanen recommended Congress repeal the Act.

Daddio said...

I wonder if the banks can counter-sue for bad regulations that forced them to make the bad loans in the first place?

Anonymous said...

What a political hoax...

Anonymous said...

Didn't the government just bail out these banks? Soo.. shouldn't they sue themselves?!