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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