There Are Two Big Reasons Why Goldman Sachs Just Got Sued For Fraud Again

The FHFA's massive bank lawsuit extravaganza is a reminder of the horrific behavior that took place inside the subprime mortgage machine: fraud.

In it's lawsuit against Goldman Sachs, the FHFA claims that Goldman directly committed common law fraud, and particularly claims that Goldman "aided and abetted fraud."

This is the second time a government agency has accused Goldman of fraud. It's a big deal.

The agency seeks to recover the damages it sustained as a result of Goldman's wrongdoing, including the amount it paid for the securities ($11.1 billion) plus interest, the amount the value of those securities have lost, and legal fees.

The most serious of the FHFA's 10 causes of action against Goldman is for fraud.

Read more: http://www.businessinsider.com/goldman-fhfa-lawsuit-2011#ixzz1X6nMlLiz