Friday, Nov 27th

Last update12:56:09 AM GMT

You are here News Economy Judge Orders Bank Of America To Pay $1.3 Billion Fine

Judge Orders Bank Of America To Pay $1.3 Billion Fine

E-mail Print PDF

Bank of AmericaA federal judge has ordered Bank of America to pay a $1.27 billion fine for fraud perpetrated by Countrywide Financial Corp., a mortgage company the bank acquired in 2008.

, a jury held Bank of America liable for bad loans Countrywide sold to Fannie Mae and Freddie Mac as part of its "Hustle" mortgage-lending program as the housing market soured in 2007 and 2008.

In his ruling Wednesday, Federal District Judge Jed Rakoff did not mince words.

"It was from start to finish the vehicle for a brazen fraud by the defendants, driven by a hunger for profits and oblivious to the harms thereby visited, not just on the immediate victims but also on the financial system as a whole," Rakoff wrote.

He based his penalty on 17,611 Hustle-related loans, for which Fannie Mae and Freddie Mac paid nearly $3 billion. The damages reflected a finding that while some of the loans were defective, they weren't all bad.

The government had sought penalties of $2.1 billion.


Most Recent Related Stories...

Another big corporation is flagrantly dodging tax. This must be outlawed

Another corporation evades taxesNo invention of modern capitalism so enrages the public as does the tax haven. When giant...

NY's Gov. Andrew Cuomo raising minimum wage for state employees

NY Gov. CuomoNew York Gov. Andrew Cuomo on Tuesday announced plans to give all state workers a minimum...

Inside the Money Laundering Scheme That Citi Overlooked for Years

Citi money laundering schemeWhen Antonio Peña Arguelles opened an account in 2005 at Citigroup’s Banamex USA, the know-your-customer documents...

Top 100 US CEOs sitting on retirement nest egg of nearly $5bn

CE0 retirement in the billionsForget retirement worries: once a fat cat, always a fat cat. The top 100 chief executive...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!