FDIC sues big bans over mortgage securities - 13 WTHR Indianapolis

FDIC sues big bans over mortgage securities

Posted: Updated:
  • HeadlinesHeadlines

  • Saturday, May 18 2013 11:54 PM EDT2013-05-19 03:54:12 GMT
    The Pacers have eliminated the New York Knicks 106-99 in Game 6 of the NBA Eastern Conference semifinals.
    The Pacers have eliminated the New York Knicks 106-99 in Game 6 of the NBA Eastern Conference semifinals.
  • Saturday, May 18 2013 11:27 PM EDT2013-05-19 03:27:58 GMT
    Check your ticket to see if you have the winning Powerball numbers: Tonight's $600 million jackpot is the largest jackpot in Powerball history and the second largest among U.S. Lottery jackpots. Fingers
    Check your ticket to see if you have the winning Powerball numbers:   10-13-14-22-52 Powerball 11
  • Saturday, May 18 2013 8:10 PM EDT2013-05-19 00:10:01 GMT
    Ed Carpenter knew he was capable of another fast run, and it earned him the pole for the Indianapolis 500. The Indianapolis native bested IndyCar racing's big-name teams by claiming his first 500 pole
    Ed Carpenter knew he was capable of another fast run, and it earned him the pole for the Indianapolis 500.
WASHINGTON -

The government has sued several big banks over toxic mortgage securities they issued that were bought by two small Illinois banks which failed in May 2009.

The Federal Deposit Insurance Corp., which seized the two banks when they failed, filed the civil lawsuits Friday in federal court. The agency named as defendants banks including Citigroup, JPMorgan Chase, Bank of America, Credit Suisse, Deutsche Bank, Royal Bank of Scotland, UBS and HSBC.

The FDIC says the banks made false statements and deceived investors about the risks in the securities backed by pools of home mortgages. The failures of the two Illinois banks, Strategic Capital Bank and Citizens National Bank, cost the deposit insurance fund $169 million and $37.2 million, respectively. The FDIC seeks a total of about $92 million in damages.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Powered by WorldNow
Links to the FCC website to view WTHR and/or WALV’s on-line public inspection files:
WTHR: https://stations.fcc.gov/station-profile/WTHR   ||   WALV: https://stations.fcc.gov/station-profile/WALV
Individuals with disabilities may contact Jill Pursell at publicfile@wthr.com, or 317.655.5602, for assistance with access to the public inspection files.
Powered by WorldNowAll content © Copyright 2000 - 2013 WorldNow and WTHR. For more information on this site, please read our Privacy Policy and Terms of Service.