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September two, 2011 –  WASHINGTON/NEW YORK (Reuters) - A U.S. regulator sued a sequence of massive banking institutions on Friday above losses on far more than $ 41 billion in subprime mortgage loan bonds, which could hamper a broader authorities mortgage loan settlement with banking institutions. The FHFA accused major banks, like Financial institution of America Corp, its Merrill Lynch unit, Barclays, Citigroup and Nomura, of offering bonds backed by mortgages that should have by no means been packaged into securities. (Reporting by Margaret Chadbourn in Washington and Jonathan Stempel in New York Further reporting by Lauren LaCapra in New York Producing by Ben Berkowitz and Dan Wilchins Editing by Carol Bishopric)