FHFA ready to sue over a dozen big banks

InternAdmin Contributor

MARKET WATCH — A federal U.S. agency is ready to sue more than a dozen major banks, arguing that they misrepresented the quality of mortgage securities they put together and sold in the run-up to the bursting of the housing bubble, according to a published report.

The New York Times reported Friday that the Federal Housing Finance Agency, which oversees mortgage firms Fannie Mae and Freddie Mac, is expected to file the lawsuits in federal court Friday or Tuesday. The agency is expected to seek billions in compensation.

Full story: U.S. said ready to sue big banks over mortgages