Released: September 03, 2011

Federal government sues major banks over Fannie and Freddie losses

Source: Brady Dennis, Steven Mufson and Zachary A. Goldfarb, The Washington Post

Federal regulators launched a broad legal assault on big banks Friday, claiming they sold nearly $200 billion in fraudulent mortgage investments to housing giants Fannie Mae and Freddie Mac that led to massive losses during the financial crisis. The suits, brought by the Federal Housing Finance Agency, name 17 domestic and foreign banks as defendants. Among them: Bank of America, J.P. Morgan Chase, Goldman Sachs, Morgan Stanley, Citigroup and Deutsche Bank.

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