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Massachusetts is suing five major banks alleging "illegal" and "deceptive" conduct in the way they seized homes during the financial crisis.
Bank of America, JP Morgan, Wells Fargo, Citigroup, and GMAC must pay for the "harm" caused, the writ says. Martha Coakley, the state's attorney general, said the banks had no legal right to foreclose on "hundreds, if not thousands, of properties". The banks have expressed disappointment over the move. Massachusetts' action could potentially de-rail attempts to reach a US-wide settlement against banks accused of hastily calling in debts as the country's property bubble imploded.
Federal and state prosecutors have been negotiating a $25bn (£16bn) deal to resolve the issue over so-called "robo-signing", where banks employed people to sort out foreclosure documents without reviewing homeowners paperwork and....Read more here---> BBC News - US banks sued over homes seizures
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8th June 2011 LINKY: Bank of America branch repossessed by couple
2nd Sptember 2011 LINKY: US 'to sue a dozen banks over housing bubble mortgages'