U.S. Set to Sue Banks Over Mortgage Securities, N.Y. Times Says
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More than a dozen large banks may be sued by the U.S. Federal Housing Finance Agency for misrepresenting the quality of mortgage securities sold at the height of the housing bubble, the New York Times said.
The agency, which oversees mortgage finance companies Fannie Mae and Freddie Mac, is likely to file the lawsuits in coming days and will seek billions of dollars in compensation, the newspaper said, citing three people briefed on the matter that it didn’t identify.