The State of Virginia announced that they would be suing 13 banks for alleged mortgage bond fraud. The banks are accused of misleading the state’s retirement system about the sale of residential mortgage-backed securities. Attorney General Mark Herring said the fund lost $383 million when it was forced to sell securities. They are suing for $1.15 billion. Banks named in the lawsuit include JP. Morgan Chase & Co., Goldman Sachs, HSBC Holding plc, Citigroup Inc., and Morgan Stanley. The banks have 21 days to respond to lawsuit.
Contributor: Laissa Alexis