Tag Archives: class action lawsuits

A new report claims that lawyers accusing several Wall Street banks of rigging the price of Fannie Mae and Freddie Mac bonds have a "cooperator" who is providing “smoking gun evidence.”

The Consumer Financial Protection Bureau (CFPB) announced on Wednesday it is considering proposing rules that will make consumer financial companies more accountable to the consumers they serve. The Bureau is considering a proposal that would prevent consumer financial companies from using "free pass" arbitration clauses that would prevent consumers from bringing class action lawsuits to obtain relief.

The court ruled on Wednesday that no action taken by RBS executives amounted to fraud with relation to the mortgage-backed securities, according to the report, and two out of the three appellate judges shared this opinion. The majority opinion said that "[s]tatements of general corporate optimism, such as these, do not give rise to securities violations."