U S TO SUE BANKS OVER MORTGAGES

The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.

The Federal Housing Finance Agency suits will argue that banks failed to perform due diligence and missed evidence that borrowers’ incomes were inflated or falsified.

Bank of America Corporation

Citigroup Inc

Goldman Sachs Group Inc

JPMorgan Chase & Company

Deutsche Bank AG

American International Group Inc

Federal Home Loan Mortgage Corp (Freddie Mac)

UBS AG

Federal National Mortgage Association Fannie Mae

The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.

The suits stem from subpoenas the finance agency issued to banks a year ago. If the case is not filed Friday, they said, it will come Tuesday, shortly before a deadline expires for the housing agency to file claims.

"WHILE THE WHITE HOUSE SLEPT"

While the White House slept, America went to hell in a handbasket. With AIG having to be bailed out, people are very upset.

The White House was so dedicated with the war, they failed to notice what was going on in the other departments. I think heads should roll. Whoever President Bush entrusted to manage these brokerage firms failed.