Economic Stimulus Package Legality & FHLMC, FNMA & FHA Investor Lawsuits?
Sue The Bastards... Three New York agencies sued...
Goldman Sachs, Citigroup, JPMorgan Chase and 23 more underwriters for allegedly helping Countrywide Financial to defraud investors.
New York's city and state comptrollers and their pension funds added the securities firms, two accounting firms...
and Countrywide officers and directors as defendants in a federal securities-fraud lawsuit filed against the home lender.
New York State Comptroller Thomas DiNapoli: "The underwriters and accountants...
enabled Countrywide to release false statements. Investors lost millions and New Yorkers lost their homes.
We need to recover the pension fund's losses and find a way to help all those families."
The state and city pension funds' combined losses from Countrywide's declining stock price (85% in the last year) were as much as $100 million.
According to the lawsuit: "The securities and accounting firms and the lender misled investors by falsely representing that...
Countrywide had strict and selective underwriting and loan origination practices...
ample liquidity and a conservative approach that set it apart from other mortgage lenders.
Countrywide's growth resulted from the company's continuing to aggressively originate...
risky loans without regard to its stated origination policies and in spite of worsening market conditions.
The securities and accounting firms took part in Countrywide's capital raising and financial statements...
without making a reasonable investigation of the facts and without exercising reasonable care."
The Nattering One muses... our position regarding the "Barney Frank Amendment" or raising of GSE loan limits has been stated here.
Did you know...
that FNMA has a special responsibility to facilitate housing for low- and moderate-income families and housing in underserved areas?
and that FNMA debt is available as collateral for public deposits?
and that Congress created the GSEs for the purpose of promoting liquidity in the secondary market?
And the GSE's have encroached into the primary market illegally?
We wonder if any investors in FNMA, FHLMC have considered lawsuits for their individual and pension fund losses? Better yet...
we hope that IF the economic stimulus package as currently authored (with GSE loan limit increases that benefit the rich.) IS passed and signed into law...
that its legality would immediately be tested in the courts under the existing FNMA, FHLMC, GNMA, FHA, OFHEO & HUD charters...
as a violation of their chartered mission that infringes on the primary market.
About FNMA, FNMA history, FNMA charter, Hattip to Bloomberg
Goldman Sachs, Citigroup, JPMorgan Chase and 23 more underwriters for allegedly helping Countrywide Financial to defraud investors.
New York's city and state comptrollers and their pension funds added the securities firms, two accounting firms...
and Countrywide officers and directors as defendants in a federal securities-fraud lawsuit filed against the home lender.
New York State Comptroller Thomas DiNapoli: "The underwriters and accountants...
enabled Countrywide to release false statements. Investors lost millions and New Yorkers lost their homes.
We need to recover the pension fund's losses and find a way to help all those families."
The state and city pension funds' combined losses from Countrywide's declining stock price (85% in the last year) were as much as $100 million.
According to the lawsuit: "The securities and accounting firms and the lender misled investors by falsely representing that...
Countrywide had strict and selective underwriting and loan origination practices...
ample liquidity and a conservative approach that set it apart from other mortgage lenders.
Countrywide's growth resulted from the company's continuing to aggressively originate...
risky loans without regard to its stated origination policies and in spite of worsening market conditions.
The securities and accounting firms took part in Countrywide's capital raising and financial statements...
without making a reasonable investigation of the facts and without exercising reasonable care."
The Nattering One muses... our position regarding the "Barney Frank Amendment" or raising of GSE loan limits has been stated here.
Did you know...
that FNMA has a special responsibility to facilitate housing for low- and moderate-income families and housing in underserved areas?
and that FNMA debt is available as collateral for public deposits?
and that Congress created the GSEs for the purpose of promoting liquidity in the secondary market?
And the GSE's have encroached into the primary market illegally?
We wonder if any investors in FNMA, FHLMC have considered lawsuits for their individual and pension fund losses? Better yet...
we hope that IF the economic stimulus package as currently authored (with GSE loan limit increases that benefit the rich.) IS passed and signed into law...
that its legality would immediately be tested in the courts under the existing FNMA, FHLMC, GNMA, FHA, OFHEO & HUD charters...
as a violation of their chartered mission that infringes on the primary market.
About FNMA, FNMA history, FNMA charter, Hattip to Bloomberg
Comments