Reply #3: Clusterstock adds

[Demeter]

...Goldman Sachs, Deutsche Bank, Morgan Stanley, and (now BofA subsidiary) Merrill Lynch have also been sued for fraud for making "false and/or misleading statements" about the securities and the underlying loans. The FHFA has asked for unspecified punitive damages against the companies.

Noteworthy: It sounds like the House Financial Services Committee was kept in the dark on this, signifying that the FHFA is acting as an independent agency on this one. Also, lots of people are named as individuals in the lawsuits. The White House did not comment on the lawsuits Friday afternoon.

The lawsuits, and the others that will follow it, were anticipated as early as at least late yesterday when the NYTimes reported that banks would be sued for their roles in the mortgage crisis.

The lawsuits seek damages in the BILLIONS — with specific dollar amounts to be determined if FHFA victorious at trial.

The news sent U.S. financials down big time Friday morning, and is particularly bad for Bank of America, as they are already on shaky ground.

Here's the press release from the FHFA: SEE LINK

Read more: http://www.businessinsider.com/it-begins-fhfa-sues-barclays-and-bank-of-america-2011-9#ixzz1WqRwKdCb