States May Sue Banks For Fraud Over Mortgage Crisis

nytimes.com:

Frustrated by the banks' inability or unwillingness to stop an avalanche of foreclosures, the states are considering lawsuits over the creation and marketing of millions of bad loans as well as the dismal pace of mortgage modifications.

Such cases would have been impossible until recently, because federal regulators had exclusive oversight of national banks. But a 5-to-4 Supreme Court decision in June allowed the states to exercise their own supervision, giving them significant leverage.

Read the whole story: nytimes.com

Comments

[need more jobs]

A friend asked me if things were really hopeless and I said yes. There will be no meaningful change or reform and things will continued suck1ng they way they have since Reagan.

good articles; http://financeopinionss.blogspot.com

And that was that.

[4closureFraud]

Guide to Looking Up Public Records for Bank Fraud

http://www.scribd.com/doc/20916919/Foreclosure-Fraud-Guide-to-Looking-up-Public-Records-for-Fraud

4closureFraud

[vascopyjama]

It hardly matters who sues who over what. The taxpayer will always foot the bill for the banks. That's the new reality given to us by politicians in their pay.

[jerrypl]

They MAY sue. HUH? Don't the states represent the citizens of that state? I am sure every hurting American wants to see their attorney's general go after every Ponzi scheming mega investment bank for damages. They are all going after the tobacco industry, so what are they waiting for?

http://eye-on-washington.blogspot.com

[rubrik r]

"While the banks are trying frantically to get loans off their books, they face the problem of large shadow inventories of housing being dumped on the market, which would depress prices further," said Anthony Sanders, real-estate finance professor at George Mason University in Fairfax, Va." With high joblessness, it is only normal that subprime-mortgage holder would like to sell their properties since they are not sure of the employment status in the coming months.
Read more
http://www.housingnewslive.com/us-housing-news-articles.php

[ReedYoung]

They should sue for all direct AND DERIVED revenues from mortgage loans. That would give us, residents of the states, the total "value" of all credit default swaps and of all bailout money, which is rightfully ours, not the banks'.

[KrugmanLiberal]

One a side note:

Carter was a great president who actually upheld :LIBERAL values

He got one term, but his legacy endures to this day and will for the generations to come

hat tip to http://financeopinionss.blogspot.com

Obama can't fill the shoes Carter, Kennedy, Johnson, FDR . He's better than Clinton, but not good enough.

[bzb]

States should sue the banks for there deceptive lending practices.

[mjtaylor22]

YE SPLS DO, STATES RIGHTS TO SUE THESE BANKS FOR DESTROYING THEIR REVENE BASE WITH LIES DECEPTION DISTORTIONS ETC ETC

[Kassandra]

BUT! BUT! Won't that infringe on the banksters "Freedom of Speech????­??????????­?????? You know, to lie to US

[econ1]

If banks had to hold the loans they wrote....n­one of this would have happened. But they could send them to Fannie and Freddie, or bundle and sell them to others....­so they had less interest in whether they would be paid back.

On the other hand, the fraud was on the purchasers of the loans....n­ot the people getting the money. If you are willing to lend me money I can't pay back so I can bet on housing or horses, I will borrow all you can shovel at me.

[vippy]

Oh gosh I hope they will do just that. Someone needs to hold them accountable. The FED and their lemmings in congress surely won't help the situation.

[Kristen777]

Best revenge yet!! I hope it works!

[JavaManiac]

Go states. And the Federal gov't better stay out of it!

[magibrotherhood]

well now,-- it`s about time somebody called them out on the obvious fraud