Attorney General Mark Herring has filed a 1.15 Billion dollar lawsuit in Civil Court this week. As reported by Housing Wire (link):
“The named banks are:
Citigroup Global Markets
Countrywide Securities Corporation
Credit Suisse Securities (USA)
Deutsche Bank Securities
Goldman, Sachs & Co.
HSBC Securities (USA)
Morgan Stanley & Co.
J.P. Morgan Securities (and as current owner of Bear, Stearns & Co.)
Merrill Lynch, Pierce, Fenner & Smith Incorporated (and as current owner of Banc of America Securities)
“Every Virginian was harmed by the financial crisis. Homes were lost, retirement accounts were devastated, small businesses saw their credit dry up almost overnight, and state and federal budget cuts hurt vulnerable Virginians,” said Herring.
“It will take many more years to recover the economic strength and stability we lost, but I will not allow Virginians to be left holding the bag for the reckless, fraudulent business practices of a few big banks who thought they were above the law. These banks lied to Virginia, and taxpayers and state employees lost hundreds of millions of dollars as a result,” Herring continued.”
This is a major development but one many appraisers and others in the housing profession will likely welcome.