View more on these topics

US banks to be sued over mortgage bonds

A dozen big banks in the US are set to be sued for allegedly misrepresenting the quality of mortgage securities sold at the height of the housing boom.

According to the New York Times, the federal agency that oversees Fannie Mae and Freddie Mac is expected to file suits against the Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank and others in the coming days.

In the suits, the Federal Housing Finance Agency will argue that the banks did not perform due diligence when assembling and marketing the mortgage securities, and failed to identify that borrowers’ incomes were inflated or falsified.

The New York Times says that individuals with knowledge of the case say it will be similar in scope to a suit filed against UBS in July by the same agency, which seeks to recover at least $900m.

The Bank of America, Goldman Sachs and JPMorgan all declined to comment, while a spokesman for Deutsche Bank told the New York Times: “We can’t comment on a suit that we haven’t seen and hasn’t been filed yet.”

Recommended

1

David Ferguson: FundsNetwork payment disclosure a big industry moment

There are times and then there are moments. In this industry we live in interesting, rapidly changing times. Times from which we will emerge with a better engagement with our customers and a sector that we might just be proud of. There is a real chance that we can finally build the kind of consumer […]

21

Ivan Massow targets IFAs’ trail with new launch

Former IFA Ivan Massow has launched a new proposition which pledges to return the majority of trail commission clients are paying if they switch from their current adviser. Massow’s says it will return 80 per cent of the trail commission and keep 20 per cent itself and is targeting clients who are not receiving any […]

Abbey cuts rates by up to 1%

Abbey for Intermediaries has launched a new range of three, four and five-year fixed mortgage products and reduced rates by up to 1 per cent across its range. The new products include: A three-year fix at 75 per cent LTV for homebuyers and remortgagers at 3.85 per cent and no fee A four-year fix at […]

The Investment Clock: Keep calm and Macron!

Trevor Greetham, Head of Multi Asset In a marked contrast to the surge in risk sentiment that followed President Trump’s election in November, markets greeted Emmanuel Macron’s victory in the French presidential election with satisfaction and relief, rather than euphoria. After rallying strongly on opinion polls that accurately predicted the outcome, the euro held onto […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Anyone want to lay odds on the same thing happening here?

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com