The Federal Housing Finance Agency sues 17 firms to recover losses to Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac
FHFA sues 17 firms to recover losses to GSEs
The Federal Housing Finance Agency (FHFA), as conservator for Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, has filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the GSEs
Complaints have been filed against the following lead defendants, in alphabetical order:
1. Ally Financial Inc. f/k/a GMAC, LLC
2. Bank of America Corporation
3. Barclays Bank PLC
4. Citigroup, Inc.
5. Countrywide Financial Corporation
6. Credit Suisse Holdings (USA), Inc.
7. Deutsche Bank AG
8. First Horizon National Corporation
9. General Electric Company
10. Goldman Sachs & Co.
11. HSBC North America Holdings, Inc.
12. JPMorgan Chase & Co.
13. Merrill Lynch & Co. / First Franklin Financial Corp.
14. Morgan Stanley
15. Nomura Holding America Inc.
16. The Royal Bank of Scotland Group PLC
17. Société Générale
The complaints seek damages and civil penalties under the Securities Act of 1933. In addition, each complaint seeks compensatory damages for negligent misrepresentation.
Certain complaints also allege state securities law violations or common law fraud.