Us 'to sue big banks over mortgages'

The Federal Housing Finance Agency, which oversees US mortgage markets, is set to file a suit against more than a dozen big banks, accusing them of misrepresenting the quality of the mortgages they offered during the housing bubble, according to reports in the New York Times.

Among the banks expected to be targeted are Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, with suits reportedly being filed as early as Friday.

The agency, which oversees mortgage giants Fannie Mae and Freddie Mac, will argue the banks failed to perform due diligence required under securities law and missed evidence that borrowers' incomes were inflated or falsified entirely.

The agency filed suit against UBS in July, seeking to recover at least $900 million for taxpayers, with sources telling the paper that the new suits would be similar in scope.

Source: ITN News