Big Banks under attack regarding the misrepresentation of mortgage quality

[EagleKeeper]

U.S. Sues BofA for $1 Billion Over Mortgage Losses

First Wells Fargo, then BofA.

Do not let them off the hook.

Others are going to be targeted; maybe a domino setup.

The federal government filed a civil lawsuit against Bank of America Corp. (BAC), alleging the second-biggest U.S. bank by assets saddled taxpayers with losses by misrepresenting the quality of home loans it sold to mortgage-finance firms Fannie Mae (FNMA) and Freddie Mac (FMCC) .

The action, filed Wednesday in federal court in Manhattan, seeks at least $1 billion in damages. The filing represents a novel effort by the government to defray costs tied to the 2008 bailout of Fannie and Freddie, and potentially opens a new front against a banking industry already dealing with hefty legal costs.

The government is suing Bank of America under the Federal False Claims Act, which has become a popular tool for prosecutors seeking to hold banks accountable for alleged mortgage misdeeds and calls for triple damages when the government can show taxpayers were ripped off

The action isn't Bank of America's first False Claims Act suit. In February, Bank of America agreed to a $1 billion settlement of False Claims Act fraud allegations tied to Federal Housing Administration-backed loans brought by the Eastern District of New York. The bank settled without admitting wrongdoing. Three other large banks have agreed to pay a total of more than $490 million in similar cases, each accepting responsibility for "certain conduct."

 

[lotus503]

U.S. Sues BofA for $1 Billion Over Mortgage Losses

First Wells Fargo, then BofA.

Do not let them off the hook.

Others are going to be targeted; maybe a domino setup.

Good next they can go after ratings agencies

 

[Texashiker]

The federal government filed a civil lawsuit

And that is part of the problem.

Take the people that responsible, put them on trial, convict them, send them to prison for 20 or 30 years,,,,.

Then lets see what corporate crime rates do.

 

[rudder]

Take this all the way up the chain to Barney Frank.

 

[highland145]

Take this all the way up the chain to Barney Frank.

:biggrin:

The whole deal is some F'd up crap. "Everyone should have a house."

Now let's sue the guys that made it happen.....after we pressured them.

G.D. I hate politicians.