Courtesy: Thestreet.com
NEW YORK (TheStreet) — The Federal Housing Finance Agency announced Friday afternoon that it had sued 17 large banks, alleging violations of federal securities laws in the sale of mortgage-backed securities to government-sponsored enterprises, including Fannie Mae (FNMA_), Freddie Mac (FMCC_).
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- Ally Financial, for $6 billion in securities sales to Fannie and Freddie.
- Barclays(BCS_), for $4.9 billion in securities sales to the GSEs.
- Citigroup (C_), for $3.5 billion in securities sales.
- Credit Suisse(CS_), for $14.1 billion in securities sales.
- Deutsche Bank (DB_), for $14.2 billion in securities sales.
- First Horizon National (FHN_), for $883 million in securities sales.
- General Electric (GE_), for $549 million in securities sales.
- Goldman Sachs (GS_), for $11.1 billion in securities sales.
- HSBC (HBC_), for $6.2 billion in securities sales.
- JPMorgan Chase(JPM_) for $33 billion in mortgage-backed securities sales by the company, Washington Mutual (which it acquired after the giant thrift failed in September 2008), and other subsidiaries, to Fannie and Freddie.
- Morgan Stanley (MS_), for $10.6 billion in securities sales.
- Nomura Holdings(NMR_), for $2 billion in securities sales.
- Royal Bank of Scotland (RBS_), for $30.4 billion in GSE Securities sales to Fannie Mae and Freddie Mac.
- Société Générale, for $1.3 billion in securities sales.
A major disadvantage of Capitalism is that the policy makers are selected by the capitalists so they are often above the law. During all these financial crises, not a single banker is imprisoned for his/her unethical actions that attributed to the crises. Islam provides the best solution to have an economy not based on interests and now we know from recent history how “interest” dilutes the power of government and work as a force against justice.
Investment, Interest, and Islam
Categories: Economics, Islam, United States