Hey, remember how our economy got/still is totally screwed by mortgage-backed securities? Now it looks like the U.S. government is getting ready to sue the banks that issued them! The NY Times reports, "The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation."

It looks like the banks targeted are the usual suspects—including Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank—and the Times adds, "The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value."

Incidentally, Bank of America has been trying to deal with its toxic brew of mortgages by settling for $20 billion, a move not liked by Attorney General Eric Schneiderman because that doesn't go far enough. In turn, Schneiderman's opposition to the BoA deal has made the White House upset.