Justice Dept. Says Bank Of America Should Be Fined $2.1 Billion For Mortgage Fraud – 31 January 2014

RT logoThe United States government is now seeking $2.1 billion in fines from Bank of America for selling fraudulent loans that precipitated the Great Recession, more than double the amount it initially sought last year.

Back in November, the Department of Justice asked a US district judge to levy about $863 million in penalties on Bank of America after a jury found the financial giant guilty of committing fraud.

During the trial, the federal government claimed that Countrywide, purchased by Bank of America in 2008, sold shoddy home loans to US-sponsored businesses Fannie Mae and Freddie Mac. It argued that the company was focused on selling as many loans as possible without concern for quality, or whether or not recipients would be capable of making the payments necessary.

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