REALITY CHECK – The Banks Are Going to Lose the FHFA Suits

The Banks Are Going to Lose the FHFA Suits, So They Are Trying to Shoot The Messenger.

By | September 10, 2011

FHFAEver since the Federal Housing Finance Authority (FHFA, Fannie Mae & Freddie Mac’s overseer) filed its blockbuster securities fraud suits against 17 banks and 131 individual bankers, a lot of commentators have said, essentially: How dare FHFA sue banks for securities fraud? Fannie and Freddie were crooks too! (Er, Fannie and Freddie were too sophisticated to be fooled! Fannie and Freddie couldn’t have been defrauded by the banks!) Continue reading