What scares the banks even more is the investors who brought the mortgage backed securities were based on a bank prospectus that stated all these mortgages were owned by the bank (ala hold title, note, etc). The investors can sue the banks for the inaccurate prospectus info. It is so funny that two years after the meltdown, no one in the major banks that melted down ever went to jail. Feds keep claiming that there were no legal grounds to prosecute. Lying on a prospectus is fraud. So is the rating agencies giving these securities AAA ratings when the documentation of these loans were sketchy or nonexistant.
These are the same guys that can lard on 30-40 charges on peasants like me and you if we drop a gum wrapper on the sidewalk.
The Feds are criminals, too.