Join Rep. Brad Miller In Conference Call Briefing On FHFA Lawsuits Against 17 Biggest Banks At 2PM Today

Tyler Durden's picture

MEDIA ADVISORY: U.S. Rep. Brad Miller to hold conference call briefing for reporters on lawsuits filed by the U.S. Federal Housing Finance Agency against 17 of the largest banks over faulty mortgage loans which helped lead the nation into the housing crisis.

RALEIGH, N.C. – The Federal Housing Finance Agency (FHFA), which manages Fannie Mae and Freddie Mac, claims that the banks misrepresented the worth of mortgage securities they arranged and sold. The court cases, seeking billions of dollars, were filed in federal court on Friday. They allege that the banks failed to perform due diligence to verify borrower income and property values that were often inflated or false. The list of banks sued by FHFA includes Bank of America Corp, Goldman Sachs Group Inc, JP Morgan & Chase & Co, Citigroup Inc, Deutsche Bank AG, Barclays PLC, Nomura Holdings Inc, Morgan Stanley, Ally Financial Inc, Credit Suisse Group Inc, First Horizon National Corp, General Electric Co, the HSBC North America Holdings unit of HSBC Holdings, The Royal Bank of Scotland Group PLC and Société Générale SA. FHFA filed extra court cases against Bank of America and its purchased Countrywide Financial Corporation and Merrill Lynch & Company divisions.

September 6, 2011

Miller has repeatedly called on Edward DeMarco, Acting Director of FHFA, to do everything in his power to recover these funds. The Congressman is available for a media briefing at 2 p.m. today to discuss what happened to prompt the lawsuits; what needs to happen next to fix the problem; and what it all means for the taxpayer.

When: Tuesday, September 6, 2011
Start time: 2:00pm (EST)
Dial-in number: 1-308-344-6400
Access Code: 150881#

h/t Manal

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Robslob's picture

Yes we can!

We can get our money back from those bankers after we gave them all our money to make money with since they lost it all the first time so in essence, and after bonuses, they will be happy to pay us back in greatly devalued dollars.

Added bonus: They will only give back 1/1000 of what they stole!


Join me in saying: Yes We Can!

baby_BLYTHE's picture

Woah, Shut em' Down!

Let real entrepreneurs that respect capital, investment and savings takeover to start a new honest banking system.

If no Gold Standard then we must return to Glass Steagall immediately! Personally, I like a combination of both

Caviar Emptor's picture

Amen to that. How much damage to they have to do to the country before something is done? The asnwer to that is really the key question to America's survival in this century. 

centerline's picture

The final blow to the system will most likely be by the ignorant masses themselves. The masses simply dont get why the system is doomed. They will all clamor that someone else needs to the take the hit... anyone but them. USPS will be a great example to watch.

baby_BLYTHE's picture

Damage/Looting is done. We are simply now in the End Game where the final consolidating phase plays out. All future FED balance sheet expansion is done at the behest of our future production, labor and output. It never has been about saving the system.

centerline's picture

Yup.  And it won't be paid back with future production.  It will be paid back by past and present production.  In essence, retirement funds and other private assets will be vaporized at some point.  I wager they already are toast - and what we see now are just zombie transactions.  Only when the music stops does it become clear that the real wealth has been turned into plastic poker chips.

MachoMan's picture

I think the market will end up fixing quite a bit of it...  after the banks collapse, we'll get much closer to 100% reserve banks...  on the low end of the totem pole, we'll get pawn shops (which are basically 100% reserve banks) and on the big end we'll get giant mattresses posing as vaults.  No need for an FDIC (total failure anyway) when the money is sitting there...

If any company dares shit where it eats (trade from deposits in another arm of the company), then this will torpedo the institution...

The trickle up will be from the bottom...  as the larger institutions dry up access to every day people... 

narnia's picture

The gold standard, a return of glass steagall, or more regulations in a terribly flawed system are not solutions to the REAL problems.  They are different flavors of flawed central economic planning.

The free market is the answer.  

FEDbuster's picture

Anyone can trade their FRNs for gold, today one oz of gold is about 1900 FRNs.  I know a fixed gold standard would limit the number of FRNs created, but stable money is of no benefit to corrupt governments.  Paying future obligations in worthless dollars is the easiest way to meet those obligations.  Ron Paul explains this method of default every chance he gets.  I hope one of the talking mannequins starts to steal some of Dr. Paul's talking points.

vast-dom's picture

And never forget that Fannie & Freddie facilitated the fraud. So whom is Brad really working for?


This is like the Repub vs. Dem sports team divide conquer cheering/voting sheeple in FHFA mortgage distractions! All for QE3! 


Gotta love it!

doomandbloom's picture

nice fat settlement and then its back to business as usual ..

"a relative newcomer to the mortgage lending community has announced a 0% deposit mortgage. Aldermore, a British bank which was founded in 2009 hopes to ensnare some of the many potential first-time "

Party like its 2011 boys..

Mitzibitzi's picture

Have you read the T&Cs for those mortgages? Not only do you get a high interest rate (though fixed for 3 years, which could be good OR bad, depending on what the economy does) but you need a guarantor. I think they have to be a relative, also.

So you default, and given that the global economy is about to tank - you are probably going to, and they can rape your family for 25% of the mortgage cost, too. Nicely offsets any loss in house value between signing and defaulting on it.

Fake Jim Quinn's picture

The banks make a deal and settle. Then they get bailed out by either a new TARP or QE^n. So net effect is the taxpayers kept government employees employed for a while longer while they diligently transferred money from one taxpayer pocket to another taxpayer pocket. The scam and ponzi is getting worse by the day

Irish66's picture

settlement reached no rico

Clint Liquor's picture

Maybe we need to after these fine upstanding Americans, also.

James Johnson got $21 MILLION for just his last year as Fannie Mae CEO
Franklin Raines got $90 MILLION for his five years as Fannie Mae CEO
Jamie Gorelich got $26 MILLION for being Vice Chair from '98 - '03

Clark Bent's picture

Is there no evil in which Jamie Gorelick does not figure since the 1990's? Who is this festering carbuncle from the Luciferian posterior? She puts together the Chinese wall that divided our law enforcement and intelligence agencies that led directly to concealing the activities of the 19 hijackers on 9-11. Then, when they put together the 9/11 Commission, this wretched harpy is actually sitting on the damned Committee? Why wasn't she a defendant? Then, as CL writes, she spent years harvesting the criminal enterprises of housing. We should fully expect that she will be appointed judge to oversee the lawsuits.


you enjoy myself's picture

don't forget that she was actually defense counsel to Duke when the lax players sued the school -- she really was on the wrong end of every major calamity over the last decade.

partimer1's picture

Is this the same guy working really hard FOR the BAC to gut the amendement to regulate the large bank last time around?  this smells like some kind of scam show. 

NotApplicable's picture

Looks like he's trying to combine some bread with his circus.

wang's picture
wang (not verified) Sep 6, 2011 10:29 AM

what gives with GLD?

MFL8240's picture

the criminals are having some fun this morning trying to shake as many people as possible out of Gold so that India and China can buy more Gold cheaper from the stupid American casino

Fake Jim Quinn's picture

The only thing we have to fear is government itself

breezer1's picture

another dive on jewish gold with all the good news coming out of europe.

excuse me , i meant to say paper gold.

stacking12321's picture

you have no idea what you're talking about.

real jews like real gold.

pods's picture

Cartman said they keep it in a pouch around their neck.


RobotTrader's picture



Nice smackdown on gold.

I guess nobody needs it any more?

Fake Jim Quinn's picture

Robo -- you forgot your /sarc off button

stacking12321's picture

people have gotten tired of gold upon realizing it doesn't pay a coupon.

except for marc faber's girlfriend.

docj's picture

So now the Gov is suing the very banks bailed out by, uh, the same Gov.

Just thinking out loud here, but wouldn't it have been easier to have, erm, just not bailed-out the banks in the first place?

Oh, right. No bonuses for banksters that way. My bad. Carry on.

Clark Bent's picture

Don't forget that Fannie and Freddie figure prominently on the bailout list. This is a "stop me before I kill again" plea. I can't imagine this is not theater, just can't see the angle yet. 

RSloane's picture

I think it is as well. Its a shuffling of billions if not trillions of dollars way over the ability of taxpayers to realize any benefits.

RobotTrader's picture



Time to buy DZZ??

WoodMizer's picture

<--Denied it

<--Supplied it

Dingleberry's picture

I want to know if any of the cocksuckers that caused this mess are going to JAIL?????  Are any criminal charges forthcoming??Otherwise, they will eventually just get the Fed to hand over some freshly printed dollars and pay off uncle Sam.  I find it difficult to believe that any bankster will have to sell even one Rembrandt or home in the Hamptons over this shit. I want them in prison and fucked in every single orafice.

NotApplicable's picture

Yet, instead they will continue growing fat by consuming the poor. At least until the riots start. Then they will flee.

tocointhephrase's picture

And in orafices that don't yet exist

DefiantSurf's picture

more bread and circus's ....move along folks nothing to see here


caerus's picture

ugly au trading...big range, failure (so far) to hold highs...

tocointhephrase's picture

Is that the direc tion of all your trades Robo? Guess your like CNBC. When you say Buy Gold (and Silver), I will run for the exit!

Caviar Emptor's picture

"Settlement" is really the Federal government recovering it's own money aka the taxpayer's money. 

If they're making this open and public, then most likely it means they'll back off really cracking down.

Translated: we'll be big on words and tone to cover up the fact that we're short on action

EL INDIO's picture

There might be a USD squeeze/rush starting.

Everybody mind your liquidity, it could get rough.

EURO <= 200 MA

GBP < 200 MA

USD index attacking 200 MA !

pelican's picture

What do you mean a USD squeeze is starting?  Please clarify.

EL INDIO's picture

I mean short covering and fleeing the EURO for the USD.

There have been reports of stresses in USD lending/borrowing and QE3 is not here yet, so there might actually be a shortage of dollars!

US companies are sitting on trillions of Euros if they get scared, what do you think they’ll do? They won’t buy Gold that’s for sure.

ReactionToClosedMinds's picture

spoke with Swissie trader early this am ....... that is exactly what he said

CHF is canary in German coal mine

By the way ,,,, many real biz persons or entrepeneurs in Euroland have already begun their world war/end-of modern-days family asset safety hedge plan.   They were caught by surprise by rapidity of swoon but they are in action now

Amerikans are grossly naive versus Asia or Euro land when it comes to practicalitie of 'preserving' family jewels

Archimedes's picture

BAC is under 7 bucks and was as low as 6.70. Buffet can buy at 7.14 hey? So how much has he lost on this deal?

rawsienna's picture

The scandle here is that a large number of these asset purchases were AAA securitizations of SUBPRIME loans.  So even though the guarantee part of the GSE biz were not allowed to insure these loans, the PORTFOLIO went ahead and purchased private label MBS backed by subprime. Without the above market bid for these assets, many of these deals would NEVER have gotten done. I think I recall some FN and FR CEO's testifying in front of congress that they did not have MATERIAL subprime exposure. So congress goes after Roger CLemens fopr lying under oath about steroids but avoids all issues related to GSE.  Nice.

Memo to Bareny Frank and Maxine Waters  - Fannie was in deep with ALT A and Subprime exposure. They just hide it - Cheap funding and 50x portfolio leverage is a bad combination


Pure Evil's picture

When the goobermint runs the three ring circus, they can put any act they want in the central ring to entertain the proletariat.

The sheeple find high finance, banking, and corrupt mortgage practices by F/F to be uber boring, so we distract them with the immolation of celebrities, pander to them with Jersey Shore, whet their sexual appitites with trannie porn, all the while addling their awareness with legal and illegal drugs.

ReactionToClosedMinds's picture

good match ...... Let's shred Texan Clemens singly for what everyone in Football and baseball and maybe other sports ...were almost all doing ........ while FannieMae and FreddieMc get a pass.

2-3 times Team 43 tried to address FannieMae & FreddieMc but the Dems stopped them. This is a historical fact .... the Dems (and some GOP also) stopped every attempt to corral FannieMae and FreddieMc in W's initial 6 years.

And before you call me a GOP shill (I consider myself an independent heavily leaning day-by-day to Ron Paul least in principle; disclosure .. did used to be hard lefty Dem until I woke up to their gross manipulation of the poor for political power), go check for yourself ... everything I am protraying is correct.

Go back and scan real-time NYTimes, WSJ, Barron's, Forbes .... from 1998-1997 onward through Summer 2008. It is all there clear as day.

Fall 2008 'credit crisis' was the most predicted crisis in my lifetime .... (but to be fair to all of us ... very few saw the more than direct connection to money market funds that almost went down those hairy 2-3 weeks in late September 2008 ... that is what set the real panic off)