US sues bank giants over mortgages

The US government has begun legal action against 17 financial firms, including the country’s largest banks, for selling billions worth of mortgage-backed securities that turned toxic when the housing market collapsed.

Among those targeted by the lawsuits were Bank of America, Citigroup, JP Morgan Chase, and Goldman Sachs Group. Large European banks including The Royal Bank of Scotland, Barclays Bank and Credit Suisse were also sued.