Bank of America Loses Fraud Trial Over U.S. Mortgages (Countrywide) [View all]
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
Nobody ever seems to go to jail!
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