FINANCIAL WIZARDS

The supporters of capitalism are always telling socialists that the owning class enjoy their elevated social status because of their masterful abilities to operate the financial and commercial system. The news that US authorities are to sue 17 major banks for losses on mortgage-backed investments that cost tens of billions of dollars seems to contradict that notion. "The Federal Housing Finance Agency said it was taking action against banks including Goldman Sachs, Barclays, Bank of America, Deutsche Bank, and HSBC. The agency says they misrepresented the quality of the mortgages they sold during the housing bubble. The values plunged as the US was engulfed in the financial crisis. The FHFA oversees mortgage giants Fannie Mae and Freddie Mac.The two firms lost more than $30bn (£18.5bn), partly because of their investments in the subprime mortgages, and were bailed out by the US government. Since the rescues, US taxpayers have spent more than $140bn to keep the firms afloat." (BBC News, 2 September) $140 billions - some masterful ability! RD