The ongoing battle of Fannie Mae and Freddie Mac against Wall Street banks continues as the Federal Housing Finance Agency (FHFA) files 18 lawsuits against financial institutions that sold $200 billion worth of securities to the two mortgage giants. While the FHFA argues that Fannie and Freddie were misled, investment banks claim everyone involved in the transactions were aware of the risks. Professor David Reiss commented on the topic to the National Law Journal. "Although the argument that 'it's hypocritical to claim you were deceived if you deceived people, too' may be good politics for the banks," he explained, "It may be legally irrelevant. They're two different things."
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