Bank of America Loses Fraud Trial Over U.S. Mortgages (Countrywide)

[Hissyspit]

Source: Reuters

Bank of America loses fraud trial over U.S. mortgages

Wed Oct 23, 2013 3:41pm EDT

NEW YORK, Oct 23 (Reuters) - Bank of America Corp was found liable for fraud on Wednesday on claims related to defective mortgages sold by its Countrywide unit, a major win for the U.S. government in one of the few big trials stemming from the financial crisis.

Following a four-week trial, a federal jury in Manhattan found the Charlotte, North Carolina bank liable on one civil fraud charge in connection with shoddy home loans that the former Countrywide Financial Corp sold to Fannie Mae and Freddie Mac and originated in a process called "Hustle."

The four men and six women on the jury also found a one-time Countrywide executive, Rebecca Mairone, liable on the one fraud charge facing her.

A decision on how much to penalize the bank would be left to U.S. District Judge Jed Rakoff. The U.S. Department of Justice has said it would ask Rakoff to award up to $848.2 million, the gross loss it said Fannie and Freddie suffered on the loans.


Read more: http://www.reuters.com/article/idUSL1N0ID1X120131023

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Nobody ever seems to go to jail!

[louis-t]

1. And no one seems to care about the people paying

for those 'defective mortgages'.

[mountain grammy]

2. Lives ruined, nobody goes to jail...

pay the ridiculously low fine and go about your rat killing..

[muriel_volestrangler]

3. Shouldn't the award be *more* than the gross loss?

Otherwise the fraudsters will just come out even.

[KansDem]

9. You would think...

It's like robbing a liquor store of $50 and a cop catches you on your way out the door; the money is never recovered. You go to trial, however, not only do you not go to jail, the judge fines you...$50.

Crazy...

[MannyGoldstein]

12. Isn't it insane that they're not asking for more?

Awful.

[msongs]

4. your republicans and democrats in DC make sure none of their cash cows go to jail nt

[DeSwiss]

5. ...in a process called "Hustle."

- I believe the word should be ''hustled.''

K&R

[Lint Head]

6. This is one of the reasons bank robberies happen. The depression era spawned bank robbers who

justified robbing banks because they saw them as the reason for making their family poor or keeping them poor. If bankers went to jail it would be a signal to the average person that the people in power are own their side as opposed to slapping their golfing and yachting buddies a slap on the wrist.

[JDPriestly]

7. Civil trial!

But who loses. Not the bank CEOs. They have contracts.

It's the baby boomers, working people and seniors who have bank accounts, savings accounts, for example on which they earn no interest.

These criminals should be in jail. That's right. But this was a civil trial. Only the government can indict the criminals that did this. And I don't know what the statute of limitations is on their crimes, but I suspect the Justice Department let it run out.

Don't grow marijuana where Google can see it. If you are seeking a life of lucrative crime, tuy a bank instead.

[Swede Atlanta]

8. Money means nothing to these devils.....

Trust me the money they will use to pay any fines is not their own. It is the money of their depositors and investors.

These cretins need to go to prison for life. Only when we treat white-collar crime the same as violent crime will this crap stop.

They need to go to prison for life - 23 hours a day in a small space. The other hour is split between a shower and some time in the yard.

[Myrina]

10. $800M, to be desposited into Medicare, Tax & Stu loan relief for low/middle incomers, and

Infrastructure/education spending.

And none of that can be written off by BoFA, either. Take the hit like the grownup criminals you are.


If they asked me. Which they won't.

[dixiegrrrrl]

11. This was a civil fraud case...

Of course it would be great if there were criminal charges brought...
However, the civil cases have been increasing, and the fines are totaling a pretty significant amount.

Oh...another post reminds us Elizabeth Warrent is pushing hard for MORE charges.
"...Tarp's watchdog has brought criminal charges against nearly 100 senior executives; obtained criminal convictions on 107 defendants, including 51 jail sentences; and suspended or banned 37 people from working in the banking industry."

http://www.democraticunderground.com/1014629501

[Rebellious Republican]

13. Go figure, slap them on the pee pee.

[valerief]

14. Court pigs. Bank pigs. nt

[llmart]

15. I won't be happy until....

BofA goes out of business.