U.S. sues Bank of America for mortgage fraud

The filing is the latest in recent series of government civil suits against Wall Street giants

Topics: Bank of America, Mortgage Fraud, Financial Crisis, Foreclosures, Fraud, Wall Street, Mortgage Crisis, Civil Suit, ,

U.S. sues Bank of America for mortgage fraud (Credit: Shutterstock)

The Department of Justice sued Bank of America for mortgage fraud Wednesday, in the latest in a series of civil fraud suits filed by the U.S. government against major banks. According to a breaking Reuters report, the complaint filed in Manhattan accuses the banking giant of “deliberately generating and then selling thousands of toxic home loans that later defaulted to Fannie Mae and Freddie Mac.”

According to U.S. Attorney Preet Bharara, these loan sales resulted in “countless” foreclosures and over $1 billion in losses. As Salon noted in early October, the U.S. filed a fraud complaint against Wells Fargo and, in September, a joint federal and state task force sued JPMorgan Chase for deceptive practices related to the sale of mortgage-backed securities. All of these suits, including today’s BofA filing, are civil and may result in monetary penalties for banks, but no jail time for bankers.

As I wrote following the Wells Fargo complaint filing, “although many welcome the government going after Wall Street, critical pundits have raised questions about the timing, noting that the Obama administration might be projecting a tough-on-banks stance with the election countdown in mind.”

Natasha Lennard

Natasha Lennard is an assistant news editor at Salon, covering non-electoral politics, general news and rabble-rousing. Follow her on Twitter @natashalennard, email nlennard@salon.com.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 11
  • Close
  • Fullscreen
  • Thumbnails
    jkrebs04, DesignCrowd.com

    Cities without landmarks

    Slide 1

    Niagara Falls, U.S./Canada

    akvarog, DesignCrowd.com

    Cities without landmarks

    Slide 2

    Sydney Opera House, Sydney, Australia

    iMAGICations, DesignCrowd.com

    Cities without landmarks

    Slide 3

    Mount Rushmore, South Dakota, U.S.

    jhgraphicsusa, DesignCrowd.com

    Cities without landmarks

    Slide 4

    Eiffel Tower, Paris, France

    Robert R., DesignCrowd.com

    Cities without landmarks

    Slide 5

    Colosseum, Rome, Italy

    Anythingoes, DesignCrowd.com

    Cities without landmarks

    Slide 6

    Taj Mahal, Agra, India

    Sergio Coelho, DesignCrowd.com

    Cities without landmarks

    Slide 7

    Siena Cathedral, Siena, Italy

    Anythingoes, DesignCrowd.com

    Cities without landmarks

    Slide 8

    Christ the Redeemer, Rio de Janeiro, Brazil

    iMAGICations,DesignCrowd.com

    Cities without landmarks

    Slide 9

    Arc de Triomphe, Paris, France

    iMAGICations, DesignCrowd.com

    Cities without landmarks

    Slide 10

    Lost City of Petra, Jordan

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>