It's already happened: the Federal Housing Finance Agency (FHFA) has filed suit against many of the nation's top banks over alleged bad acts involving mortgage-backed securities, i.e., ForeclosureGate. (Read the agency press release here.)
The question is -- what are the consequences?
Specifically, here is what's happened: the following big name financial institutions have been sued by the federal government - as well as individuals that include not only some of the bank's top officers but also some of the defendant lenders' unaffiliated lead underwriters -- for alleged violations of (1) the Securities Act of 1933, a federal claim for damages that gets these cases filed in federal court as well as (2) analogous claims under state securities law and (3) assorted tort claims under state law including negligent misrepresentation and/or common law fraud.
Torts, of course, bring with them the possibility of compensatory (punitive) damages. These banks and bankers are being sued for intentional bad acts under state and federal law.
Federal and State Law Claims Asserted Against 17 Lenders (and Various Individuals) by the FHFA
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.