State prosecutors, U.S. banks in talks about lawsuits

Banks consider a deal that will limit liability in return for big payments

State prosecutors are offering a deal to U.S. banks that allegedly misrepresented mortgage securities sold during the housing bubble that will limit their liability in exchange for a multibillion-dollar payment.

The Federal Housing Finance Agency is accusing Bank of America, Citigroup Inc., JP Morgan Chase and more than a dozen other banks of irresponsibly marketing mortgage securities to investors and not properly reviewing borrowers’ paperwork, which led to the housing crisis.

Ashley Post

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