FHFA Sues 17 Banks for $196 Billion, Financials Fall on the News and Miserable Job Data
Yesterday the suddenly concerned Federal Housing Finance Agency, on behalf of Fannie Mae and Freddie Mac, filed 17 lawsuits in New York state and federal courts. The FHFA accuses the financial institutions of misleading Fannie Mae and Freddie Mac about the toxicity of the mortgages underlying the securities.
The FHFA is seeking $196 billion from the 17 banks (GE is around 25% financial at this point) for $41 billion in losses. The details are fresh, at this point I gather $4.7 in per $1 in losses is, those figures display a high level of civil penalties and punitive damages intended.
The FHFA is seeking $196 billion from the 17 banks (GE is around 25% financial at this point) for $41 billion in losses. The details are fresh, at this point I gather $4.7 in per $1 in losses is, those figures display a high level of civil penalties and punitive damages intended.
Bank of America, Citigroup, Merrill Lynch & Co., Barclays Plc, Nomura Holdings Ltd., HSBC Holdings Plc, JP Morgan Chase, Credit Suisse Group AG, Deutsche Bank AG, First Horizon National Corp., Ally Financial Inc., Countrywide Financial Corp, Goldman Sachs, Royal Bank of Scotland, Morgan Stanley, Société Générale and General Electric.
This after suing Switzerland’s UBS AG, in July over $4.5 billion in residential mortgage-backed securities sold to Fannie Mae and Freddie Mac.
Below is a brief look at some of the securities performance on the day of announcement, which was a 2.5% down day for the S&P and NASDAQ. Listed below the company name: ticker symbol, closing price, +/- arrow, gain/loss for the day, percentage move and Friday's volume.
7.25
-0.66
-8.34%
282,341,083
Barclays:
Citigroup:
We didn't nationalize our banks, we bailed them out so their customers could sue them and punish them in the market place.
ReplyDeleteFrank I would say the banks are punishing the people in and outside of the marketplace.
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