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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  That's where the class action suits matter (6+ / 0-)

    There are already some of these in the works -- pension funds (especially public employee pension funds) suing the banks and investment banks for securities fraud, for lying about the quality of the mortgages that were bundled up into those CDOs, when the banks either knew or deliberately turned a blind eye to how much fraud there was all through the system and to the looming defaults. (In other words, "You told me I was buying an Audi, but really it was a rusty old jalopy, and you knew it.") If those suits are successful, Goldman Sachs and all those folks will have to cough up a mint to pay the pension funds -- which is good for taxpayers (for the public employee funds) and for retirees.

    That's why it's so important that the federal settlement does NOT prevent these lawsuits from going forward.

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