Bank of America sued by US for $1B
Bank allegedly sold bad loans
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Posted: 10/24/2012
Last Updated:
207 days ago
Bank of America is being sued by the United States for $1 billion for allegedly selling bad loans to Fannie Mae and Freddie Mac.
The top federal prosecutor in Manhattan says he's suing Bank of America for $1 billion for mortgage fraud against Fannie Mae and Freddie Mac.
U.S. Attorney Preet Bharara says Countrywide, which was later bought by Bank of America, had procedures designed to process loans at high speed and generated thousands of fraudulent loans.
Bharara says it's the first civil fraud suit brought by the Justice Department concerning loans that were later sold to Fannie and Freddie.
Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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