Massachusetts is suing five major banks alleging “illegal” and “deceptive” conduct in the way they seized homes during the financial crisis.
Bank of America, JP Morgan, Wells Fargo, Citigroup, and GMAC must pay for the “harm” caused, the writ says.
Martha Coakley, the state’s attorney general, said the banks had no legal right to foreclose on “hundreds, if not thousands, of properties”.
The banks have expressed disappointment over the move.
Massachusetts’ action could potentially de-rail attempts to reach a US-wide settlement against banks accused of hastily calling in debts as the country’s property bubble imploded.
Federal and state prosecutors have been negotiating a $25bn (£16bn) deal to resolve the issue over so-called “robo-signing”, where banks employed people to sort out foreclosure documents without reviewing homeowners paperwork and circumstances.
Ms Coakley said: “We have two clear goals with this lawsuit – one is to provide for real accountability for the role the banks have played in unlawful and illegal foreclosures, and secondly to provide for real and enforceable relief for the harm that the misconduct has caused.”
The complaint claims the banks violated Massachusetts law with “unlawful and deceptive” conduct in the foreclosure process, including unlawful foreclosures, false documentation, robo-signing, and deceptive practices related to loan modifications.
‘It’s taken too long’…
Source BBC News Read more
Isn’t this about time?
Massachusetts is doing what the freakin’ President should have done back in 2008 instead of bailing the bastard banks out.
The banks are squealing like stuck pigs!
I hope Bank of America, Citigroup, JPMorgan, GMAC and Wells Fargo are taken to the cleaners over this issue.
They are nothing but thieves supported by the government.
The collective $29bn deal being negotiated is bullshit. If the banks are ‘happy’ with $29bn, then it is but a drop in the proverbial bucket. The real figure has to be much more, a hell of a lot more, so much more that it would make the heads of mere mortals spin.
If every state did this, the people may, just may get a fair deal.