"Bank of America Corp. (BAC), Citigroup Inc., JPMorgan Chase & Co. (JPM) and Barclays Plc (BARC) were sued by the Federal Housing Finance Agency over residential mortgage-backed securities.
In lawsuits filed today in Manhattan federal court, the agency, representing Fannie Mae and Freddie Mac, also named as defendants Nomura Holdings Ltd., HSBC Holdings Plc and Credit Suisse Group AG.
The FHFA has been demanding refunds from banks for loans sold to Fannie Mae and Freddie Mac that were based on false or missing information about borrowers and properties. The two government-backed mortgage finance firms had to be rescued by taxpayers as defaults on home loans soared toward record levels.
The agency said in today’s filings that Fannie Mae and Freddie Mac bought $6 billion in securities from Bank of America; $24.8 billion from Merrill, which Bank of America bought, and $3.5 billion from Citigroup".............READ MORE
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