Description:   Shares of Bank of America, JPMorgan Chase and others are hit hard following reports that a federal housing authority plans to sue a dozen or so banks for their shady mortgage dealings.

Source: CNNMoney.com – video report

Date: 09/02/2011

Link:  http://money.cnn.com/video/markets/2011/09/02/mkts_midday_banks_bac.cnnmoney/

Questions for discussion:

• Do you believe these potential lawsuits have merit?
• How should investors deal with this “cloud” hanging over these banks?
• What is the market reaction likely to be until this issue is resolved?
• Can you conceive of a goal of authorities, that explains this strategy and its logical outcome?