Wednesday, October 20, 2010

Trouble brewing for banks

Remember all those "mortgage backed securities" that triggered off Great Depression 2.0? Well, now the suckers are lawyering up to get their money back. This might mean a $40 billion hit on the banks.
Theory is, say the suckers, the banks selling the mortgage backed securities didn't do their paperwork right. For proof they say, look at the foreclosure mess where the banks don't have the paperwork to prove that they own the mortgages that are defaulting.
Naturally, nothing will happen until lawsuits are filed and get to court, which will take years, but should the banks loose in court it will cost them.

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