Sept. 8 (Bloomberg) -- The Vietnam War gave us the
expression, “We had to destroy the village in order to save
it.” The same kind of thinking might help explain the U.S. bank
rescues of 2008: We had to save the banks in order to sue them.
Last week, the conservator for Fannie Mae and Freddie Mac
filed lawsuits against 17 financial institutions to recover
losses on faulty mortgage bonds sold to the two government-backed housing financiers. One of the defendants was Ally
Financial Inc., the lender formerly known as GMAC that once was
the finance arm of General Motors Co.