Bank Of America Found Liable For Fraud

A jury in New York found Bank of America liable for fraud Wednesday after a monthlong civil trial. The verdict was considered a win for the Justice Department's prosecution of misdeeds during the financial crisis.

Copyright © 2013 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

STEVE INSKEEP, HOST:

NPR's business news starts with a verdict against Bank of America.

(SOUNDBITE OF MUSIC)

INSKEEP: Last night, a jury in New York found the bank liable for fraud after a month-long civil trial. It was considered a win for the Justice Department's prosecution of misdeeds during the financial crisis. Federal prosecutors argued that a division of Bank of America, Countrywide Financial, wrote bad home mortgages to people clearly unable to repay the loans.

Countrywide then sold those mortgages to the government-backed Fannie Mae and Freddie Mac and, of course, many loans later failed. The judge is set to hear arguments December 5th on the government's request for a fine of $848 million.

Copyright © 2013 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.