US authorities on Friday sued 17 top US and foreign banks over 'billions of dollars' in losses on mortgage-backed securities that plunged in value in the 2008 financial crisis. --PHOTO: AP
NEW YORK (AFP) - US authorities on Friday sued 17 top US and foreign banks over 'billions of dollars' in losses on mortgage-backed securities that plunged in value in the 2008 financial crisis.
In court filings the Federal Housing Finance Agency alleged that in some cases the lenders committed fraud in selling nearly US$190 billion (S$229 billion) in securities to mortgage giants Fannie Mae and Freddie Mac, which had to be bailed out by the government.
US firms targeted in the suits included Bank of America (BOA), Goldman Sachs, Citigroup, JPMorgan Chase, Morgan Stanley, General Electric, Ally Financial and First Horizon.
The foreign banks were Deutsche Bank, HSBC, Credit Suisse, Barclays, Nomura, the Royal Bank of Scotland and Societe Generale.
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