Bank lawsuit story updated with additional information, comments from Attorney General Martha Coakley.
NEW YORK (TheStreet) -- Massachusetts Attorney General Martha Coakley announced on Thursday that her office is filing a lawsuit against five banks including Bank of America (BAC) and JPMorgan Chase (JPM), for alleged unlawful and deceptive practices in the foreclosure process.
The complaint accuses the banks of unlawful foreclosures through the pervasive use of false documentation including "robo-signing,", foreclosing homeowners when they did not hold the mortgage, corrupting Massachusetts' land recording system through the use of MERS and failing to uphold loan modification promises to Massachusetts homeowners.The lawsuit sought "real accountability" from the banks for their role in making unlawful and deceptive foreclosures and "real and enforceable relief" to homeowners of Massachusetts. Attorney General Coakley said during a press conference that banks had proved that they were "too big to care" about the impact of their behavior on homeowners, cities and states. While she had been hopeful that the settlement talks which had begun a year ago will be concluded by now, the banks had failed to offer meaningful and enforceable relief to homeowners in Massachusetts. She declined to comment on the amount of damages the lawsuit is seeking, but said it will be "a lot". The lawsuit is being seen as a potential setback for settlement talks between banks and the 50 state Attorneys General but does not come as a surprise. Coakley had indicated earlier in August that she was unhappy with the negotiations, saying she had "lost confidence" in the pace and ability of the banks to reach an agreement. She indicated that she was still open to joining the settlement efforts if the terms adequately address the interests of Massachusetts. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV