Posted on 11/09/2013 3:24:49 PM PST by lbryce
The U.S. government urged that Bank of America Corp pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit.
In a filing late Friday in the U.S. District Court in Manhattan, the government also asked for penalties against Rebecca Mairone, a former midlevel executive at the bank's Countrywide unit who the jury also found liable, "commensurate with her ability to pay."
(Excerpt) Read more at finance.yahoo.com ...
It seems odd that an administration that can be summed-up in a one word description as that of being pervasively fraudulent would be so concerned about fraud perpetuated by others.
There's a lot of interesting points made by comments posted at the link.
If mortgage fraud for profit will not be tolerated, they’ll be going after Franklin Raines and FNM any day now, right? They’ll reining in the bizarrely lax documentation standards designed to get more mortgages into the hands of Hispanic noncitizens, right? They’ll have all applicants held to the same rational standard of creditworthiness regardless of race, right?
Right?
Can we get a little payback on the healthcare fraud?
“...”We believe the filing overstates the volume of loans and the appropriate measure of damages arising from one narrow Countrywide program that lasted several months and ended before Bank of America acquired the company,”...”
Translation: “We didn’t steal that much.”
ping...
Wasn’t BoA somewhat forced to take on Countrywide?
I’m not sticking up for everything the big banks did but Bank of America was forced into taking over Countrywide. And I don’t think the crook that had been CEO of Countrywide that gave special loans to Democrat lawmakers ever got into any trouble.
Individuals were defrauded, but, gubmint takes the $864 million...yeah, that sounds about right.
By the way, $864 million is a lot of jingle to have laying around to pay a fine with.
Government sues it co-conspirators.
The bankers will let a contract........
simple, clean, effective
why aren’t people in jail for fraud. Theres no justice here folks. Only the shareholders/customers of the company got hurt, while the criminal is still free and getting paid highly
These bank fines are, IMO, nothing more than a vehicle to transfer funds back to the government cronies of BO. It would be interesting to follow up on any actual payment of fines and see where the money actual went.
That’s the problem with Fascism: just because you bought the government once doesn’t mean they stay bought.
They were “urged” to pay?
2nd on all that.
“Wasn’t BoA somewhat forced to take on Countrywide?”
EXACTLY!!!!
Don’t remember the details; but the Feds pressured them I think.
I worked for BofA originating mortgages until 2005; they did pretty plain; boring safe loans. Then they made the huge blunder of buying toxic Countrywide. I assumed they did their due diligence; but they didn’t.
Probably an $864 Million fee for getting away with $864 BILLION in fraud. And the real victims will get nothing.
B of A was in no way shape or form forced to acquire Countrywide.
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