{"id":6844,"date":"2019-02-27T09:40:40","date_gmt":"2019-02-27T15:40:40","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6844"},"modified":"2022-09-27T21:05:31","modified_gmt":"2022-09-28T02:05:31","slug":"big-banks-are-accused-of-rigging-freddie-mac-and-fannie-mae-bonds","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/big-banks-are-accused-of-rigging-freddie-mac-and-fannie-mae-bonds\/","title":{"rendered":"Big Banks Are Accused of Rigging Freddie Mac and Fannie Mae Bonds"},"content":{"rendered":"<p>The City of Birmingham Retirement and Relief System and the <a href=\"https:\/\/www.trustfunds103.com\/benefits\/pension\/\" target=\"_blank\" rel=\"noopener noreferrer\">Electrical Workers Pension System Local 103<\/a> have filed a proposed class action securities fraud lawsuit accusing a number of big banks of colluding with one another to rig the prices of Federal Home Loan Mortgage Corp. (Freddie Mac) and Federal National Mortgage Association (Fannie Mae) unsecured bonds. The defendants in the case include JP Morgan (JPM), Bank of America (BAC), Citigroup (C), Barclays Bank (BARC), Deutsche Bank (DB), Credit Suisse (CS), UBS (UBS), Merrill Lynch, BNP Paribas Securities Corp., FTN Financial Securities, Goldman Sachs (GS), and First Tennessee Bank.<\/p>\n<p>According to <em>Law360,<\/em> the plaintiffs contend that the bank took advantage of the dark market nature of the \u201cprivate, \u2018over the counter\u2019 (OTC) market\u201d where these bonds are bought and sold to get investors to buy the Freddie Mac and Fannie Mae bonds at prices that were \u201cartificially high.\u201d<\/p>\n<p>Fannie and Freddie are both government-backed mortgage-finance companies. They are typically known for converting mortgages into mortgage-backed securities. This investor fraud lawsuit, however, is focused on their unsecured bonds. The proposed class contends that investors purchased the bonds because they thought they were safe, liquid, low risk, and likely to make returns. Their complaint states that the plaintiffs and other investors had not expected the \u201covercharges and underpayments\u201d that resulted because of the banks&#8217; alleged collusion.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/big-banks-are-accused-of-rigging-freddie-mac-and-fannie-mae-bonds\/\"  title=\"Continue Reading Big Banks Are Accused of Rigging Freddie Mac and Fannie Mae Bonds\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The City of Birmingham Retirement and Relief System and the Electrical Workers Pension System Local 103 have filed a proposed class action securities fraud lawsuit accusing a number of big banks of colluding with one another to rig the prices of Federal Home Loan Mortgage Corp. (Freddie Mac) and Federal National Mortgage Association (Fannie Mae) [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6409,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3762,4052,3738],"tags":[3013,3302,3209,3303,3304,3305,3306,3237,3307,3308,3000],"class_list":["post-6844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-investigations","category-institutional-investors","category-investor-fraud","tag-bank-of-america","tag-barclays-bank","tag-citigroup","tag-credit-suisse","tag-deutsche-bank","tag-first-tennessee-bank","tag-ftn-financial-securities","tag-goldman-sachs","tag-jp-morgan","tag-merrill-lynch-bnp-paribas-securities","tag-ubs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Banks Accused Of Rigging Freddie Mac And Fannie Mae Bonds &#8212; Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"Major banks including Bank of America, Citigroup, Merrill Lynch and JP Morgan are accused of rigging Freddie Mac and Fannie Mae bonds.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/big-banks-are-accused-of-rigging-freddie-mac-and-fannie-mae-bonds\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Banks Accused Of Rigging Freddie Mac And Fannie Mae Bonds &#8212; Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"Major banks including Bank of America, Citigroup, Merrill Lynch and JP Morgan are accused of rigging Freddie Mac and Fannie Mae bonds.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/09\/9.4.18.jpeg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; 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