Tuesday, September 6, 2011

Fannie Mae and Freddie Mac - #3224 - VIDEO: Timeline Shows Bush, McCain Warning Dems of Fannie Mae and Freddie Mac - Brit Hume, Bret Baier, Fox News (2) Feds Sue 17 Banks Over Risky Mortgages - The Blaze


Timeline Shows Bush, McCain Warning Dems of Fannie Mae and Freddie Mac - Brit Hume, Bret Baier, Fox News.   Please watch, very important review of what happened leading up to the housing bubble bursting. This clip received 94,396 views, an identical clip on a Canadian web site received 6,223,755 views.

Feds Sue 17 Banks Over Risky Mortgages - The Blaze - The government on Friday sued 17 financial firms, including the largest U.S. banks, for selling Fannie Mae and Freddie Mac billions of dollars worth of mortgage-backed securities that turned toxic when the housing market collapsed.  Among those targeted by the lawsuits were Bank of America Corp., Citigroup Inc., JP Morgan Chase & Co., and Goldman Sachs Group Inc. Large European banks including The Royal Bank of Scotland, Barclays Bank and Credit Suisse were also sued.  The lawsuits were filed by the Federal Housing Finance Agency. It oversees Fannie and Freddie, the two agencies that buy mortgages loans and mortgage securities issued by the lenders.  The total price tag for the mortgage-backed securities sold to Fannie and Freddie by the firms named in the lawsuits: $196 billion. In a statement Friday, Bank of America rejected the claims in the government’s lawsuits.  Fannie and Freddie invested heavily in the mortgage-backed securities even after their regulator said they didn’t have the needed risk-management capabilities, the bank said. “Despite this, (Fannie and Freddie) are now seeking to hold other market participants responsible for their losses,” it said.  Bank stocks fell sharply on Friday as news of the government’s lawsuits emerged. Bank of America tumbled 8.3 percent, JP Morgan Chase fell 4.6 percent, Citigroup lost 5.3 percent, Goldman shed off 4.5 percent and Morgan Stanley’s ended down 5.7 percent.  Residential mortgage-backed securities bundled pools of mortgages into complex investments. They collapsed after the real-estate bust and helped fuel the financial crisis in late 2008. Read more........ AW:  Good to keep in mind who really caused the housing crisis that we continue to experience.  Congressmen Barney Frank and Chris Dodd were in the middle of the pressure on the banks to originate these loans,  remember the demonstrations that occurred in front of bank officials' homes to add to this pressure of making loans to people who really couldn't afford the homes without special considerations from these banks.

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