UPDATE :
FHFA suit stops short of going nuclear, ignores the biggest flaw in securitization/REMICs – failure to properly convey the notes….instead, FHFA sez loans were xferred properly to trust, to prevent 100% taxation 4 failure 2 comply w/ IRC’s REMIC requirements. Cute…I worry that this is an attempt to fix / limit total bank exposure by getting uncontested ruling that REMIC provisions were followed…
via @Thad Bartholow
What? Why is “WELLS FARGO” not listed? Let me know when they get to “W”.
FHFA Sues 17 Firms to Recover Losses to Fannie Mae and Freddie Mac
Washington, DC — The Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (the Enterprises), today filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.
Complaints have been filed against the following lead defendants, in alphabetical order:
LITIGATION
Federal Housing Finance Agency
?FHFA Filings in PLS Cases, September 2, 2011 | |
---|---|
Ally Financial Inc. f/k/a GMAC, LLC | Complaint [PDF] |
Bank of America Corporation | Complaint [PDF] |
Barclays Bank PLC | Complaint [PDF] |
Citigroup, Inc. | Complaint [PDF] |
Suisse Holdings (USA), Inc. | Complaint [PDF] |
Credit Suisse Holdings (USA), Inc. | Complaint [PDF] |
Deutsche Bank AG | Complaint [PDF] |
First Horizon National Corporation | Complaint [PDF] |
General Electric Company | Complaint [PDF] |
Goldman Sachs & Co. | Complaint [PDF] |
HSBC North America Holdings, Inc. | Complaint [PDF] |
JPMorgan Chase & Co. | Complaint [PDF] |
Merrill Lynch & Co. / First Franklin Financial Corp. | Complaint [PDF] |
Morgan Stanley | Complaint [PDF] |
Nomura Holding America Inc. | Complaint [PDF] |
The Royal Bank of Scotland Group PLC | Complaint [PDF] |
Société Générale | ?Complaint [PDF] |
FANNIE MAE
- United States of America and Federal Housing Finance Agency In Re Conservatorship of: Federal National Mortgage Association
- United States of America and Office of Federal Housing Enterprise Oversight Notice Number 2006-1 In the Matter of Franklin D. Raines, J. Timothy Howard and Leanne G. Spencer
FREDDIE MAC
- United States of America and Federal Housing Finance Agency In Re Conservatorship of: Federal Home Loan Mortgage Corporation
- OFHEO’s Statement of Case [PDF] and OFHEO’s Third Revised Notice of Changes in Enforcement Action [PDF] Against Former Freddie Mac CEO Leland C. Brendsel
- United States of America and Office of Federal Housing Enterprise Oversight, Petitioners v. Leland Brendsel, Respondent
- United States of America and Office of Federal Housing Enterprise Oversight, Petitioners v. Vaughn A. Clarke, Respondent
The cases are Federal Housing Finance Agency v. Bank of America Corp. (BAC), 11-CV-6195; FHFA v. Barclays Bank Plc., 11-CV- 6190; FHFA v. Citigroup, 11-CV-6196; FHFA v. Credit Suisse Holdings (USA) Inc., 11-CV-6200; FHFA v. Deutsche Bank AG, 11- CV-6192; FHFA v. First Horizon National Corp., 11-CV-6193; FHFA v. Goldman, Sachs & Co., 11-CV-6198; FHFA v. HSBC North America Holdings Inc., 11-CV-6189; FHFA v. JPMorgan Chase & Co., 11-CV- 6188; FHFA v. Merrill Lynch & Co., 11-CV-6202; FHFA v. Nomura Holding America Inc., 11-CV-6201; FHFA v. SG Americas Inc., 11- CV-6203, U.S. District Court, Southern District of New York
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The lawsuits will give homeowners the opportunity to claim their loans were predatory loans. However, I too worry that they are missing a huge opportunity to shine a light on the fact that they were never properly transferred into the trust in the first place. I agree with Thad. It’s a huge elephant in the room that they are ignoring and it’s not hard to imagine why. They want to salvage what they can for the taxpayers and if it becomes known that the investors never had ownership of the loans well let’s just say the IRS will have a field day collecting back taxes and penalties and interest. Investors will go after the banks in droves. It is curious indeed.