Bank of America ordered to pay $1.27 billion for 'Hustle' fraud

[Eugene]

Source: Reuters

Bank of America ordered to pay $1.27 billion for 'Hustle' fraud

BY JONATHAN STEMPEL
NEW YORK Wed Jul 30, 2014 4:44pm EDT

(Reuters) - A federal judge on Wednesday ordered Bank of America Corp (BAC.N) to pay a $1.27 billion penalty for fraud over shoddy mortgages sold by the former Countrywide Financial Corp.

U.S. District Judge Jed Rakoff in Manhattan ruled after a jury last October found the second-largest U.S. bank liable for the sale by Countrywide of defective loans to government-controlled mortgage companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB)

Rakoff also ordered former mid-level Countrywide executive Rebecca Mairone, who was also found liable and was the only individual charged, to pay $1 million, citing her "leading role" in the fraud and calling some of her testimony "implausible."

While the bank's penalty was below the $2.1 billion sought by the U.S. Department of Justice, it marks another legal defeat for Bank of America over its disastrous July 2008 purchase of Countrywide, which has cost tens of billions of dollars in litigation, loan buybacks and writedowns.

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Read more: http://www.reuters.com/article/2014/07/30/us-bankofamerica-fraud-idUSKBN0FZ23R20140730

[msongs]

1. lookee here, no jail time for fraud. its not a crime if you're too big says our AG nt