Is it unfair to file suit against lenders responsible for the housing bust years after the fact? The federal government would say "No". MortgageIT has been under scrutiny for more than half a decade. After merging with Deutsche bank, and recording a record quarter, the fed chimed in with "Liar, Liar, pants on fire", to the tune of a billion dollar lawsuit.
A little ironic that Deutsche bank acquired its subsidiary for less than 500 million in 2007, but is facing a lawsuit double the acquisition price for actions that took place prior to the merger. Deutsche says that 90% of the problem took place prior to the acquisition. The fed claims the resale of the bad mortgages took place between 2007 - 2009, justifying the case against them. If the fed wins this suit, it could be one of the keys to a payback.
With the amount of bad lending judgments offered by large U.S. Banks, it is interesting the one the fed cast a lawsuit on is German based. Would it do more harm than good, if the fed took up similar lawsuits against large U.S. lenders? MortgageIT played a significant role in bad lending practices, and we would like that money back please.
According to a Dow Jones Newswire released in late March, 2011, the fed and treasury are already reaping returns on the TARP plan. The original amount loaned to big banks was $245 billion. They have already received $251 billion back from this unpopular bailout plan. The government will profit from interest and repayment on some lenders, and from lawsuits on others.
The fed has implied Deutsche bank is not lining their pockets with honest money. There are those who would accuse the fed of being far greater crooks than any consumer bank. A federal watchdog once said that the fed and treasury lied about several top banks being healthy who were not, when they launched the TARP rescue plan. If that is true, how are they already turning profit just a couple years after the fact?
A little ironic that Deutsche bank acquired its subsidiary for less than 500 million in 2007, but is facing a lawsuit double the acquisition price for actions that took place prior to the merger. Deutsche says that 90% of the problem took place prior to the acquisition. The fed claims the resale of the bad mortgages took place between 2007 - 2009, justifying the case against them. If the fed wins this suit, it could be one of the keys to a payback.
With the amount of bad lending judgments offered by large U.S. Banks, it is interesting the one the fed cast a lawsuit on is German based. Would it do more harm than good, if the fed took up similar lawsuits against large U.S. lenders? MortgageIT played a significant role in bad lending practices, and we would like that money back please.
According to a Dow Jones Newswire released in late March, 2011, the fed and treasury are already reaping returns on the TARP plan. The original amount loaned to big banks was $245 billion. They have already received $251 billion back from this unpopular bailout plan. The government will profit from interest and repayment on some lenders, and from lawsuits on others.
The fed has implied Deutsche bank is not lining their pockets with honest money. There are those who would accuse the fed of being far greater crooks than any consumer bank. A federal watchdog once said that the fed and treasury lied about several top banks being healthy who were not, when they launched the TARP rescue plan. If that is true, how are they already turning profit just a couple years after the fact?
