Banks Brace for Foreclosure and Investment Lawsuits

By Kyle Chezum Updated on 11/9/2010

11/09/2010

Citigroup, Bank of America, Wells Fargo, and now J.P. Morgan face numerous lawsuits each over claims of foreclosure fraud and improper filing of mortgage backed securities.  The lawsuits demand hundreds of billions of dollars collectively as recompense for erroneous foreclosure filings and supposed securities misrepresentation.

Bank of America reported, however, that one major lawsuit has been dismissed, which may be a sign that not all claims of fraud are legitimate.  Nevertheless, the stalemate is bound to slow down the recovery from the financial side.

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