In His Activist Days Obama Sued Banks to Ease Lending Practices… Now He’s Suing Banks For Risky Mortgages

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).

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  • Militan Conservative

    betcha Bank of america is not on the list.

    That is george soros recently bailed out bank.

    powder is dry

  • Militan Conservative

    ahh I see, suing to RECOVER monies spent by soros.

    Yup always in his favor.

  • Tyrconnell

    Ah yes, the old “You did what we told you to, now you must pay!” bit.

  • Joisey

    And I want to sue Barney Frank and Maxine Waters!

  • MrGoodWench

    What about Freddie’s Fannie?

  • This is like a an arsonist that is also the Fire Chief getting the City attorney to sue the match company to pay for the building he torched!

  • Missy8s

    This is the sign folks, they’re about to collapse the financial system.

    If you’re invested in the market beware the reaction on Tuesday, it won’t be pretty at all.

    They waited for the end of the market day ON A FRIDAY for a reason.

    The other shoe is about to drop, DUCK!

  • MrGoodWench

    What about Freddie’s Fannie?
    Why did they buy what the banks were selling ?
    Maybe Franklin Raines will come out of his palatial penthouses and enlighten us all

  • MrGoodWench

    Joisey commented:
    And I want to sue Barney Frank and Maxine Waters!
    +++++
    Oh yeah, the gangsta banks need to go straight to hell !
    I wonder if the CBC racists and the anti-American WH have been coordinating their strategies and talking points against whites and Jews

  • rb

    These are the same banks that were involved in the bail outs. They got money from the government, Have they paid the government back? If they have now they will have to pay more. (Hope they haven’t donated money to campaigns yet! They are going to need thier money. Where are Freddie and Fannie. Why are they not being sued. Because they are the ones that grease the hands. they are the ones that grease the hands. Fannie. Why are they not being sued. Because they are the ones that grease the hands. they are the ones that grease the hands.

  • chris

    I worked on M&A deals for a large bank in 80’s and 90’s

    It was a requirement that in order to get government approvals that the acquiring bank promise to make billions of loans to marginal credit risk recipients and/or expand into unattractive markets.

    Plenty of old press releases at time of each mega merger in 1990’s and early 2000’s about how big the extortion was. ACORN was almost always one of the parties with its hand out and a recipient of some grants or contracts.

  • rbosque

    Wasn’t “risky mortgages” what got us in this mess in the first place? I distinctly remember the (CRA) Community Reinvestment Act issued by Democrats during the Clinton years ordering banks to issue loans to high risk people.

    What they are doing is using the power of the Executive branch to shut down the banks in the long term. This is nothing but fascism.

  • squeaky

    [[“The [sub-prime] financial engineering that created the Wall Street meltdown was developed by the Pritzkers and Ernst and Young, working with Merrill Lynch to sell bonds securitized by sub-prime mortgages,” Timothy J. Anderson, a whistleblower on financial and bank fraud, told me in an interview.]]
    http://www.consortiumnews.com/2008/022708a.html

  • myohmy

    Now they find out who they are sleeping with. LOL.

  • MrGoodWench

    Y’all do remember that ” bankers ” and ” bankstas” are codes for Jews + White people
    among Marxists, right ?

  • truth teller

    Here’s what I have to say to Obama:

    01000110
    01010101
    01000011
    01001011
    01011001
    01001111
    01010101

  • SM-AZ

    How about sueing Barry for breach of contract…….all that hope and change, jobs, empty promises and instead we have a complete mess?????

  • young truthteller

    really america you voted for this guy really? i am 8 years old

  • young truthteller

    this guy turned the world upside down so much i am so crazy i mean my god i wish he s byebye soon hes the worst we had yet.

  • Missy8s

    # 16

    VERY Nice!

    Awesome play!

  • zane

    It would be interesting to know how many of those failed loans originated with ACORN. Banks, under the direction of the Clinton Administration, and in keeping with the Community Reinvestment Act, where required to grant loans to borrowers who had been processed, and approved, by ACORN. ACORN made tons of money because they were paid “lenders fees” since they processed and approved the loans.

    And if I remember correctly, it was the repeal of a 1930’s law that allowed banks to roll those mortgages into securities.

    After Clinton put the CRA on steroids, to make home ownership more available to those who could not only not afford a mortgage payment, his intention was to have the GSEs hold at least 50% of those mortgages. Now, if you get a fixed rate loan, say for 30 years, your bank is required to sell that mortgage to one of the GSEs. The banks no longer hold long term mortgage notes. That leaves the borrower with two options; a fixed rate loan that will be sold to a GSE or a variable rate mortgage that is probably held by your own bank.

    Basically, what the Obama administration has done is sue banks for doing exactly what they were required by law to do, while the likes of Franklin Raines, who cooked the books to get a higher bonuses at Fannie, walked scott free. Of course, Raines is part of the “in” group of crooks now occupying the White House. Check with your own bank; they will tell you that every bank in America who gives mortgage loans is required to have a CRA officer who fills out the compliance reports on how well they are doing lending money based on (tah-dah) race.

  • young truthteller

    hes made evreyone a thug and he made people start taking drugs i am so mad at america for voting him in grrrr.

  • Missy8s

    A message to our “dear leader” President Downgrade…

    01000111 01101111 00100000 01000110 01110101 01100011 01101011 00100000 01011001 01101111 01110101 01110010 01110011 01100101 01101100 01100110 00100000 01001111 00100000 01000010 01101100 01100001 01101000 00100000 01000010 01101100 01100001 01101000 00100001

  • KOW

    This is the same Fed that loaned the banks $1.2t from 2007-2010?

    http://www.bloomberg.com/news/2011-08-21/fed-data-from-29-000-pages-show-banks-borrowings-methodology.html

    All this as Financial Institutes’ profits are being hit, though they are still high at $400b.

    “Domestic profits of financial corporations decreased $54.2 billion in the second quarter,
    compared with a decrease of $38.7 billion in the first. “

  • KOW

    Should add

    Citigroup took $99.5 billion, Bank of America $91.4 billion, or a total of $298.2 billion, peak borrowing. Morgan Stanley borrowed $107.3 billion,

  • zane

    According to Thomas Sowell in his book, The Housing Boom and Bust, he says:

    “Mortgages made under the Community Reinvestment Act were especially vulnerable during the housing downturn, to the detriment of bother borrowers and lenders. For example, lending done under Community Reinvestment Act criteria, accordign to a quarterly report in October, 2008, constituted only 7 percent of the total mortgage lending by the Bank of America, but constituted 29 percent of its losses on mortgages.”

    Recently I read that Eric Holder is, once again, investigating lending banks that refuse to take into consideration means of income like welfare, child support, etc. So the banks are damned if they do (lend to people with no possible hope of ever repaying the loan) or damned if they don’t (denying loans based on people’s inability to repay the loan).

  • Gay Caballero

    Militan Conservative commented:

    betcha Bank of america is not on the list.

    That is george soros recently bailed out bank.

    No. That was Soros’s equally evil twin, Warrren Buffet.

  • donh

    These banks need to start SELLING their hoards of Treasury bonds. Stop borrowing cash from the Fed at 0% to buy T bills at 3%..Stop playing the government’s game of communal Karl Marx central banking…….SELL SELL SELL …Force the FED to either raise interst rates up from 0% or roll the Zimbabwe style $10,000 notes hot off the presses. Lets roll !

  • zane

    Add to this the fact that under Dodd-Frank, small, local banks will not be able to lend money to anyone, even those they know are safe risks. Dodd-Frank makes it impossible to small local banks to met the criterion that the Holder DoJ has put into place.

    I think the goal here to to make the GSEs the only place that a borrower can get a loan, which would put all home mortgages in the hands of a quasi-government agency.

  • KOW

    Drudge has something on the US debt at CNSNews.

    I looked at the PDF file, and we are about $55b from hitting our debt limit again. They dont even mention that.

    Total Public Debt $14,638,920

    Statutory Debt Limit $14,694,000

  • tarpon

    So the feds make up dumb mortgage rules and now the feds sue the banks for following their dumb rules?

    How exactly does this insanity work?

  • martha

    I hope the Banks lawyers as part of the trial bring out all those old videos of Barney Frank and Chris Dodd, and Maxine Waters insisting to people from Bush’s administration that the mortgages were good. Let’s see if we ca’nt get them in trouble for insisting the banks make loans to people who never had any hope or intention of paying them back.

  • zane

    tarpon, when the federal goverment requires banks to renegotiate loans with people who could not afford the monthly mortgage payment in the first place, those loans will eventually go belly up. That is happening.

    Until the CRA is repealed, and standard lending practices are put back into place, this crisis (which Obama will not let go to waste) will continue.

    See, it works like this: I sell you a house that has payment you can currently afford. But………….
    you have gotten a low introductory rate of say 2%. In three years, your interest rate has gone up to 5%, your property has been valued by the county to be worth more sending your taxes up and your insurance, paid for via escrow, also has gone up in light of your increased property values. That house that was costing you $1,000/month now costs you $1,400 a month and your income has not increased. On top of that, utilities have increased in cost, food has increased in cost, and now you are between a rock and a hard place? Do you eat and pay for your lights, heat and ac or do you let your house be forclosed on?

  • Bobbi

    Let’s bring out those videos of the community organizers going to peoples’ private homes and harassing banks to make sure all those NINJA loans were ptrocessed OR ELSE!

  • kato

    This is about two things:

    1. Deflecting attention from the real cause of ther mortgage mess: the government.

    2. Furthering Obama’s redistributionist agenda by giving zero-down subprime parasites the houses they never had any intention of paying for. You know who most of the parasites are: the ones demanding their Obama Money.

  • Larry Sheldon

    Evert time I see mention of the evil banks and crooks and so on I think of A. P. Giannini’s Bank of America which was still called Bank of Italy by some people when I was little.

  • MrGoodWench

    tarpon commented:
    So the feds make up dumb mortgage rules and now the feds sue the banks for following their dumb rules?
    How exactly does this insanity work?
    +++++
    Its strictly my guess but looks like this lawsuit is a pre-emptive strike by Frank+Waters and other Freddie-Fannie corruptocrats.
    The feds are not suing because the banks gave risky loans .
    The feds are suing because the banks bundled these loans as securities and
    SOLD THEM TO FREDDIE+FANNIE.
    The feds are basically admitting that Freddie+Fannie were so stupid that they bought those securities from these banks , and lost money .
    So it must be the banks’ fault that Freddie+Fannie made stupid decisions .

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  • Tony

    @Militan Conservative:

    That would be Warren Buffett bailing out Bank of America, not George Soros….http://moneyland.time.com/2011/08/25/buffett-to-bank-of-america-i%E2%80%99ve-got-your-back/

  • Redwine

    01000011 01101111 01101101 01110010 01100001 01100100 01100101 00100000 00001101 00001010 01000100 01100101 01100001 01110010 00001101 00001010 01001100 01100101 01100001 01100100 01100101 01110010 00001101 00001010 01010011 01110101 01100011 01101011 01110011

  • martha

    Can someone please explain what all those messages with the 0’s and 1’s are? My eyes do’nt work so well, so if there is something there I ca’nt see it.
    Thanks

  • Redwine

    Martha – It’s binary code.

  • martha

    Redwine: Thanks, I’m not computer savvy enough to get it 🙂

  • Granny
  • jb books

    Let’s not forget people like Gorelick and Raines who walked away with millions.

  • jb books

    …and all the FOAs (Friends of Angelo).

  • Highlander

    The banks did what they were told and lent money to those risky borrowers, knowing full well that it was a stupid thing to do. They were between a rock and a hard place, so they did what any smart business owner would do … they took the necessary steps to protect their businesses. Obama is just upset because the banks were smart enough to package and sell those mortgages before they got burned on them. This was nothing but another one of the many “progressive” plans to redistribute wealth from the “evil banks” into the hands of Democratic voters. It blew up in their faces … so what do liberals do when things don’t go their way? They sue of course …

    It’s hard to believe that the American people would be foolish enough to entrust the financial security of this country to people who have absolutely no understanding of the realities of business and economics.

  • jb books

    #45
    It’s hard to believe that the American people would be foolish enough to entrust the financial security of this country to people who have absolutely no understanding of the realities of business and economics.
    _______________________________________________________

    I wonder this often, it’s hard to fathom.

  • bg

    ++

    LOL!! first he lawywers for them, now
    he’s taking them down.. BRILLIANT!!

    keep telling you that correcting Hitlers mistakes is what
    makes Obama tick (aka: Amin al Husseini’s revenge)..

    Hitler did strengthen the German establishment, but not exactly in
    the way the bankers and businessmen had wanted; and now, fifty
    years later, it is clear who was using whom.

    maybe now a few light-bulbs will at least flicker.. *sigh*

    ==

  • Tony

    @ truth teller

    01010011 01001111 00100000 01010011 01100101 01101110 01110011 01101001 01110100 01101001 01110110 01100101 00101100 00100000 01110100 01101111 01110101 01100011 01101000 01111001 00101100 00100000 01110100 01101111 01110101 01100011 01101000 01111001 00100000 01110100 01101111 01110101 01100011 01101000 01111001 00101100 00100000 01001100 01001111 01001100

  • bg
  • Blacque Jacques Shellacque

    Evert time I see mention of the evil banks and crooks and so on I think of A. P. Giannini’s Bank of America which was still called Bank of Italy by some people when I was little.

    Bank of America was a respectable outfit before it was acquired by Nations Bank.

  • truth teller

    Thanks for all the Binary messages…all hilarious!

  • donh

    Re Warren Buffett #38…..Looks like Obama just suckered Warren Buffet to take a BIG stake in Bank of America and 2 weeks later he’s on the hook for billions in legal liabilities….fullfilling that famous promise of Karl Marx…” The Capitalists will sell us the rope with which we will hang them”…They baited Buffet with some juicy insider information ..played on his greed to buy into a large stake …now they hang him by the ankles to shake all the loose change out of his pocket.

  • young truthteller

    thugs play nockout why dont we play nockout i am the son of truth teller

  • Tony

    So many here take good news SO poorly. Prejudice marches on in America…

  • owl

    Drudge………..calling Drudge. How I wish he would run this pic of Obama with this story.

    This pic is priceless and pretty much tells all you need to know about The Barrack Hussein Obama. If this was Bush, WaPo, NYT, ABC, NBC, CBS, MSNBC, CNN etc, etc would frontpage it.

  • Tony

    @donh

    Buffett is his own man and he makes his own decisions. He was never “suckered” or “baited” like the victims of those toxic mortgages. Buffett knows what he’s doing.

  • bg

    ++

    Bank Of America’s Director Of Public
    Policy Tells Rick Perry ‘We’ll Help You Out’

    more here..

    dubious source, but it was caught on tape..

    gee, maybe now they’ll release Obama’s Khalidi tape?? /s/

    ==

  • MrGoodWench

    Tony commented:
    Buffett knows what he’s doing.
    +++++++
    Does he know how much money he owes in taxes and when he plans to pay that ?

  • bg

    ++

    Tony #38 September 2, 2011 at 5:49 pm

    Warren Buffett’s IRS problems

    [UPDATE

    Robert Romano, senior editor at Americans for Limited Government informs us that Buffett’s total tax bill is more than $1 billion. Pay up or shut up, Warren.]

    ==

  • MrGoodWench

    Does anyone know if Obama’s illegal muslim drunkel owns a house ?

  • zane

    #56 Tony, victims of those toxic mortgages? Pleeeeeze, spare me. People who bought those homes should have known the terms of the mortgage. If they didn’t, I don’t have any sympathy for them because they are too stupid to enter into any legal contract. The only victim here is the taxpayer, who continues to make his mortgage payment but is now on the hook for the cost of TARP and the millions and millons of dollars given to people for mortgage relief via the government. Why should people who are making their payments have to bail out those who got loans thru ACORN that can’t now pay their mortgages?

    Some people should never own a home. It’s not exactly like renting where you can call the landlord when your toilet overflows or your air conditioner goes out. That comes out of your pocket, and if you can’t afford upkeep, you can’t afford the house.

  • donh

    If Buffett ” knows what he is is doing ” , he is then a progressive socialist financier like Engles was to Karl Marx …This would mean Buffett took a big stake in Bank of American so he could order the bank to LOSE the law suit, reach a settlement with Obama, and turn the housing market into a HUD program where deadbeats get to live for years in nice suburban homes without ever making a mortgage payment.

  • bg

    ++

    hah, if you don’t think they’re all working together one way or another..

    again i say, in all sincerity, Welcome to the NWO, your great
    grandchildren will never remember America “the way it was”..

    ==

  • Valerie

    Each of the Republican presidential candidates should be well able to make the point that BO was involved in suing the banks into making these loans, and suing them because they made them.

    The intention of the CRA was not bad, but it got pushed past reasonable limits, and its consequences bent our banking system completely out of shape. When the needed adjustments require a jeweler’s screwdriver, a sledgehammer won’t do.

  • bg
  • bg

    ++

    oh yeah, i plum forgot..

    ditto all binary code posts!! 😀

    ==

  • Buffett had no problem going to the White House to accept a medal from Obama. Barney Frank stays in Congress, Chris Dodd “retires” to avoid a crushing electoral defeat (too bad–really wanted to see him stomped by the electorate) and all responsible people are required to “bail out” the irresponsible.

    Is this still America or has Obama+his minions taken on so much water we’re already sunk?

  • Molon Labe

    Sounds liketypical Chicago politics here. You have a nice businesses here, wouldn’t want anything to happen to it now, would we?

  • bg

    ++

    Shadow #69 September 2, 2011 at 8:25 pm

    sini sank sunk 😛

    ==

  • Limousine Barry

    We are halfway there!

    First, I sued the banks to force them to make bad loans. Next, I am going to sue them for following my legal enforced bad loan instructions. Ha ha! I suck but as a economic molester I am darn good.

    My limousine is running and Barney Frank is in the back. We have to get Warren Buffet out of his BOA stock before he loses his entire investment. We are half way there. Four more years! Good Day.

  • Sally

    bg,

    You are amazing.

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  • Scott

    Orwellian! You could not write this stuff in a Hollywood Screenplay and have anyone believe it…Banks follow lending standards manadated by the Feds thru the CRA and Fannie Mae. The whole rotten mess disintegrates…The government bails out banks with TARP. Now, the government sues banks for doing what was strong-armed and mandated by them…It’s an Obama world. And yet, Obama is merely the last in a long line of Federal “know it alls” who have nearly bankrupted the richest country in the world…

  • bg

    ++

    Sally #73 September 2, 2011 at 8:58 pm

    thank you..

    and really don’t know what to else say, frankly
    i’m a bit amazed someone thinks i’m amazing.. 😀

    re: #71

    sini = sink

    ==

  • Buffalobob

    Why have Barny the Frank and Chris the Dodd not been indited as co conspirators?

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  • hungry4food

    A Canadian Muslim speaks – PLEASE LISTEN this is about Obama , please spread this its vital to our future !!!! This guy campaigned for Obama in 2008 and what he says tells me he is scared as so we the people need to take this warning very very serious !!!!!!

    Tarek Fatah is a Canadian moderate Muslim Advocate who considers himself a liberal democrat. He campaigned for Obama and believes there are advisors around Obama who are intentionally destroying our culture along with our economy. He believes they are from the Muslim Brotherhood; and being a Muslim himself, he can talk to these points.

    This is a 15 minute video but it is captivating and should be watched by all in America, be they Democrat, Republican or Independent…or no part at all. Please spread this and encourage everyone you know to listen to his words of wisdom. It was prepared less than 60 days ago and presented at a major conference in Canada.

    http://www.livestream.com/ideacity/video?clipId=flv_fd017d81-dc18-42cc-821a-18b86fdea840

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  • Iconoclast

    Dishonesty & hypocrisy are key characteristics of one species of “progressives” – the other species is recognized by naiveté or heavy drug use or cognitive dissonance . . . frequently all of these elements. I can think of no current dimrat politician who does not fall into the first group, and WTF is the poster boy for that species.

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  • bg

    ++

    hungry4food #80 September 3, 2011 at 8:51 am

    EXCELLENT!! MUST GO VIRAL!!

    thank you..

    scroll for more..

    just a sample..

    been posting about that for several years now..

    crickets..

    ==

  • Valerie

    #66 September 2, 2011 at 7:12 pm
    Valerie commented:

    Another note: according to my Dad, that was all President Bush’s fault because the Bush administration was involved in rolling back all regulations on all businesses. I bet that’s news to a lot of businesses, including banks!

    Yes, the Bush administration is at fault for the mess at Fanny and Freddie because it wanted to require banks to make better loans, and this has been called “deregulation” by the Democratic opposition.

    Simply F’king amazing. My daddy knows damn well that Congress has to act to repeal regulations. Why he believes this [email protected] is beyond me.

    However, this is the narrative that the Republicans must counter. It’s obviously a load of nonsense to those who have actually followed the legislative give-and-take, but it must be countered far and wide by the party as a whole.

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