Certain banks giving you problems?

[Jim Wineinger]

Check out this excerpt from one article that I recently posted!

Recognize any names?

The Federal Home Loan Bank of San Francisco sued nine securities dealers alleging they misled it about the credit quality and risks of loans behind $19.1 billion in private-label residential mortgage-backed securities. Among several dealers, Credit Suisse, Deutsche Bank, JPMorgan Chase, and Bank of America were named as defendants. The FHLB is seeking to rescind its purchases of the securities, which were rated AAA “based on the information provided by the securities dealers… the dealers made untrue or misleading statements about the characteristics of the mortgage loans underlying the securities…failed to disclose that appraisals were biased upward on properties that secured mortgage loans, that underwriting guidelines were ignored by originators and that loan to property value ratios were exaggerated. The Federal Home Loan Banks of Seattle and Pittsburgh last year sued banks including JPMorgan Chase, Morgan Stanley and Goldman Sachs Group. You can check it out for yourself: http://www.fhlbsf.com/