WASHINGTON May 8 A federal judge on Wednesday
said the U.S. can pursue parts of a civil lawsuit against Bank
of America Corp over its sale of toxic mortgages to
Fannie Mae and Freddie Mac, boosting a
largely untested legal theory the government used in the case.
Bank of America had sought to dismiss the lawsuit, which
seeks penalties under the 1989 FIRREA law and other laws.
U.S. District Judge Jed Rakoff issued a two-page ruling on
Wednesday with his findings, but said he will explain the
reasons for his decision at a later date.