In his early activist days, Barack Obama the community organizer sued banks to ease their lending practices. Now his administration is suing banks for issuing risky mortgages.
State Sen. Barack Obama and Fr. Michael Pfleger led a protest in Chicago in January 2000. (NBC 5 Week of January 3, 2000)
Breaking on FOX News…
The Federal Housing Finance Agency announced late this afternoon that it had sued 17 large banks for risky mortgages.
The Street reported:
The Federal Housing Finance Agency announced Friday afternoon that it had sued 17 large banks, alleging violations of federal securities laws in the sale of mortgage-backed securities to government-sponsored enterprises, including Fannie Mae (FNMA), Freddie Mac (FMCC).
According to a Reuters report, the FHFA’s suit was related to $41 billion in mortgage-backed securities issued by the 17 banks.
Bloomberg reported that the FHFA sued to recover losses on $6 billion in mortgage-backed securities packaged by Bank of America (BAC), $24.8 billion in securities originally packaged by Merrill Lynch, and $3.5 billion originally packaged by Citigroup (C).