U.S. to sue big banks over mortgages

The Washington Post reports:

The agency that oversees U.S. mortgage markets is preparing to file suit against more than a dozen big banks, accusing them of misrepresenting the quality of mortgages they packaged and sold during the housing bubble, the New York Times reported late Thursday.

The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac, is expected to file suit against Bank of America, J.P. Morgan Chase, Goldman Sachs and Deutsche Bank, among others, the Times reported, citing three unidentified individuals briefed on the matter.