In the News (From BBC News): “The US is planning to sue more than a dozen major banks for misrepresenting the quality of mortgages they sold during the housing bubble…
“Bank of America, JPMorgan Chase, and Goldman Sachs are to face action…
“The Federal Housing Finance Agency… blames the banks for failing to perform adequate checks on the quality of mortgage securities they sold on to investors before the financial crisis in 2008.
“Some executives say the losses were made because of the wider economic downturn.
“Others fear further litigation against banks could damage America’s fragile recovery…”
My Comment: Banks are stronger than the state, but the government needs to be re-elected, and the banks, of course, will admit their mistakes and pay fines—for the benefit of the voters!