Housing Market

Better Late Than Never

Good news, federal lawsuits are being filed against mortgage villains Bank of America and Goldman Sachs, among others, for their role in marketing worthless mortgage securities to investors.

The United States plans to file lawsuits against more than a dozen big banks over mortgage-backed securities seen to have fueled the 2008 economic crisis, the New York Times said.

The lawsuits are set to be filed Friday or early next week against Bank of America, JP Morgan Chase, Goldman Sachs, Deutsche Bank and others, the newspaper reported, citing three unnamed individuals briefed on the matter.

The lawsuits will accuse the banks of bundling toxic mortgages -- held by borrowers with inflated or falsified incomes -- as securities and marketing them to investors.

To be clear -- the lawsuits will be focused primarily on the marketing of mortgage backed securities, which were dubiously rated triple-A, to the government-backed firms Fannie Mae and Freddie Mac.

  • mrbrink

    Sports rules and penalties should apply to these firms and corporations in general.

    A corporate penalty box, or corporate prison. If Martha Stewart can do time, so should Goldman Sachs. If we’re going to be forced to play the corporate-personhood charade, let corporate freedom be taken away.

    Suspension of commerce and trading activities.

    Random CEO embezzler tests and accounting audits!

    Expulsion from the league of the United States of America.

    • JMAshby

      Good ideas!

      • mrbrink

        Here’s an idea.

        Celebrating the “D” in Democratic party?

  • mrbrink

    Oh this should be good.

    If quarter billion dollar fines are a slap on the wrist, this is a conga line kick in the balls.

    “Guilty! Guilty! Guilty!”

    Too soon?

    I love a good ol’ fashion perp walk.

    Line em’ up!

    • Scopedog

      Yep, certainly a great thing. Will be very good to see how things play out.

      Now, is Matt Taibbi going to say something positive about this? Or is he just going to continue to write about how Obama is Wall Street’s puppet (and calling Obama “Barry” at the same time)?

      • mrbrink

        But all this justice and accountability on a battered and filibustered shoestring personnel budget having to battle the forces of relentless right wing doom, corporate entrenchment, voting zombies, Chuck Tuckersons, Rolo Tomassis, and insatiable liberal hipster apathy?

        Sign me up for four more, please.