Fannie, Freddie Losses Over $200B MBS Not Fraud, Banks Say

Law360, New York (July 16, 2012, 8:27 PM EDT) -- Wall Street banks accused of lying to Fannie Mae and Freddie Mac about the quality of $200 billion in residential mortgage backed securities urged a federal court Friday to dismiss the Federal Housing Finance Agency's lawsuits against them, arguing that they can't be blamed for the government's losses during the financial crisis.

Goldman Sachs, Ally Financial Inc., JPMorgan Chase and Morgan Stanley, Merrill Lynch & Co. on Friday filed motions to dismiss the suits on the grounds that the FHFA’s complaints failed to adequately prove scienter,...
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