The Government Is Going To Sue The Big Banks For Swindling Fannie, Freddie, and Others On Crap Mortgages

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Bank of America Boat" width="400" height="300" />The regulator that oversees Fannie Mae and Freddie Mac is going to sue the country's big banks for swindling everyone with toxic mortgages during the housing bubble, reports Nelson Schwartz of the New York Times.

The suit will be filed against Bank of America, JP Morgan, Deutsche Bank and others.

The claim?

The banks knew or should of known that borrowers were lying about their income and assets and that the mortgages the banks were issuing were crap.

So add this to the colossal wave of lawsuits that have hit the banks in recent months. And add this to the pile of concerns that lead many observers to believe that Bank of America and other banks will have to raise additional capital.

SEE ALSO: Here's The Bomb That Might Blow A Hole In Bank Of America

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Cat Fight: Gawker And Fox Are At Each Others' Throats Over An Investigative Story

This morning, Fox broke away from Hurricane Irene coverage to discuss Gawker.

Fox says that Gawker, along with 7 other sites are "dead or dying." Blogger, MySpace, Bebo, Chatroulette, Digg, TypePad and Slashdot were also discussed.

"This popular gossip site's traffic has dropped 75 percent this year, according to Compete, and has wallowed in its own bad press over the years," Fox writes.

"Foster Kamer, a former Gawker writer, shared some insight on his former gig...“You’re scooping the muck from the sewer and holding it up in your hand and saying, ‘Look at this. Smell this.’”

Gawker says the bashing is preemptive. It says it has been working on a story that will expose one of Fox's anchors.

"Firstly, Gawker's traffic is not down 75% this year. This chart shows that we had 68.2 million pageviews as of August 24, as opposed to something just north of 40 million at the same time a year prior...Secondly: I [John Cook] have for several weeks been working on a story about a Fox News personality that Fox News really does not want published! Fox knows what the story is, because I've asked its PR department for comment (they refused)."

This isn't the first time Gawker and Fox have fought. Gawker previously wrote that Fox's News chief is a maniac, and Fox retorted that the site is a lousy joke.

Gawker is the high-brow gossip sheet covering media, entertainment, politics and technology.

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