Big Banks To Declare War On Fannie, Freddie Over Lawsuit

A rumor published by Politico yesterday about big banks declaring war on the FHFA and their Democratic supporters:

• BANKS CONSIDER TOTAL WAR - M.M. hears that instead of contemplating settlements of the FHFA mortgage-backed securities lawsuits, big banks and their attorneys are more likely to pursue what insiders describe as an all out war strategy in which they go after Fannie Mae and Freddie Mac (and by default their Democratic supporters) in a scorched earth strategy to show the GSE’s took an active role in creating the very securities they are now suing the banks over.

• Scan the headlines of our coverage of the FHFA lawsuit