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

[NYC Liberal]

Source: Wall Street Journal

The federal government filed a civil lawsuit against Bank of America Corp., BAC +0.53% 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 -0.37% and Freddie Mac FMCC 0.00% .

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 alleges Countrywide, which Bank of America acquired in 2008, dismembered quality control and checks on loan quality in 2007 through 2009, in a process called "the Hustle" that aimed to boost the speed at which it originated and sold loans to the companies. The mortgage unit falsely continued to claim the loans qualified for insurance from Fannie Mae and Freddie Mac, the complaint alleges.

Read more: http://online.wsj.com/article/SB10001424052970204530504578076680514724050.html

[banned from Kos]

1. Countrywide was as slimy as any financial institution in 50 years.

They make BoA look honest in comparison.

Now Bank of America will pay dearly.

[Wernothelpless]

2. What is B of A worth what? ...

.05 cents on the dollar? ... .10 cents? ... does the fed believe they're going to get blood out of this turnip?

[DJ13]

3. $$$'s in fines

000 in arrests

Fines mean nothing to these companies, and isnt a deterrent.

[Festivito]

4. Saddle F Mac and F Mae with bad loans, then say how bad government is.

Republicans want us to lose Fannie Mae and Freddie Mac just like they want us to lose the Postal Service... by saddling them with debt they did not deserve.

[jtuck004]

5. Everyone involved, buncha' hypocrites.

Are those that could act failing to because they are more afraid of the tyrants than the people? That can't be good for a free and democratic country. The fraud is clear, we've put people in jail before for the same things and lesser amounts.

Funny comments about one of the financial overlords this am. People are morally offended by Donald Trump's offer today because they see it's like someone tossing $20 bucks to a prostitute. Trump's never made anything that wasn't taken from other's labor, and wouldn't have $5 million with which to try to buy behavior unless he got it from us first. That he could even make such an offer in public tells us a lot about who owns who.

We live everyday supporting these traitors, paying them $40 billion a month, zero interest loans, trillions of dollars in support, change banking laws to help them take more, bankruptcy laws so they can follow a student to the grave - all to keep them in power and collecting a larger share of all wealth than they could possible deserve because we might have a decrease in lifestyle? Maybe such a "catastrophe" would hurt the millionaires a lot more than people who are used to trying to survive on $4.50 a day already?

How can any amount be worth the trade off in human dignity? One can either be free or work in Mr. Charlie's house. Not both.

Unless they are held to account we are working in servitude to these traitors to our country.

[davidwparker]

6. +1

Everyone who was involved at the highest levels should be charged with fraud.

[dixiegrrrrl]

8. Didja notice this spate of suing the banks is happening just before the election?

Guess who romney's top donors are?

Goldman Sachs $965,140
Bank of America $844,734
Morgan Stanley $768,216
JPMorgan Chase & Co $749,918
Credit Suisse Group $588,841
Wells Fargo $524,601


Obama's top donors:
University of California $927,568
Microsoft Corp $680,769
Google Inc $661,996
Harvard University $535,405
US Government $528,603
Kaiser Permanente $426,407
Stanford University $414,266

http://www.opensecrets.org/pres12/contrib.php?id=N00009638

[jtuck004]

9. I noticed that we grow abt the $ value in Broccoli in this country than they are suing GS for.

And a lot of people don't even like broccoli

Those are partial lists of corporations-who-are-people changing our laws with the help of those who make them to profit at the expense of opportunity for each of us to do better.

It amazes me that some people seem to hate broccoli more than they even so much as suspect the people in these corporations, even though broccoli didn't destroy the economy, increase unemployment, reward fraud and incompetence, contribute to increases in poverty, the number of working poor, and the early death of millions of Americans.

But there are A WHOLE LOT MORE of us than there are of them, so perhaps someone will figure out how to organize for economic rights for all in the future from 2020 as well as they did in the 1920's. Then maybe we can get over our fear of walking away from the Master's house.

Or maybe we become more like South America...

[Omaha Steve]

7. K&R!