Bank of America sued for $1 billion mortgage fraud

is being sued for $1 billion for an alleged .

The civil lawsuit has been brought by the US Attorney , the top federal prosecutor in Manhattan, New York.

Preet Bharara accuses Countrywide Financial, which Bank of America bought in 2008, of selling thousands of toxic home loans to .

Fannie Mae and Freddie Mac are government agencies that support the US mortgage market.

Bank of America has yet to comment.

Countrywide is accused of running a trading scheme from 2007 to 2009 that was deliberately designed to process loans at high speed without checks on their quality.

The legal action against Bank of America follows similar moves by the US government earlier this month against Wells Fargo and .

On October 2nd, JP Morgan was sued for allegedly defrauding investors who lost more than $20 billion on mortgage-backed securities sold by Bear Stearns.

JP Morgan, which bought the investment bank in March 2008, said the allegations related to actions at Bear Stearns prior to its takeover.

Meanwhile, on 10 October, Wells Fargo was also sued by federal authorities for alleged mortgage fraud.

The US government alleges that Wells Fargo lied about the quality of mortgages it handled, leading to huge losses for the Federal Housing Administration.

Wells Fargo has denied the allegations.

 

Bank of America has agreed to pay US government mortgage agency Fannie Mae $3.6 billion to settle claims relating to residential home loansBank of America to pay $3.6 billion to Fannie Mae mortgage agency JP Morgan bought the investment bank Bear Stearns in March 2008JP Morgan Chase faces $20 billion fraud suit over Bear Stearns mortgage securities Four people have been sentenced to death in Iran for their roles in the country's biggest-ever bank fraud scandalIran: four people sentenced to death over $2.6 billion bank fraud JPMorgan Chase has raised its estimate of the value of its recent losses from trading in complex financial derivatives to $4.4 billionJPMorgan Chase doubles its trading loss to $4.4 billion Standard Chartered bank illegally "schemed" with Iran to launder as much as $250 billion for nearly a decadeStandard Chartered bank in $250 billion scheme with Iran for nearly a decade Parijat Saha, a teacher from India, got the shock of his life when he checked his bank account online and found 490 billion rupees ($9.8 billion)Indian teacher Parijat Saha’s shock at his $9.8 billion bank balance Kweku Adoboli, the City trader who lost $2.2 billion of Swiss bank UBS's money, has been found guilty of two counts of fraudKweku Adoboli sentenced to seven years in jail for UBS $2.2 billion-fraud Cricket tycoon Allen Stanford has been found guilty by a court in Houston, Texas, of running a $7 billion Ponzi schemeAllen Stanford convicted of $7 billion fraud in a Ponzi scheme
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Posted by on Oct 24 2012. Filed under Breaking News, Business, Finance, Front Page, U.S. News. You can follow any responses to this entry through the RSS 2.0.

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