NEW YORK Oct 23 Bank of America Corp
was found liable for fraud on Wednesday on claims related to
defective mortgages sold by its Countrywide unit, a major win
for the U.S. government in one of the few big trials stemming
from the financial crisis.
Following a four-week trial, a federal jury in Manhattan
found the Charlotte, North Carolina bank liable on one civil
fraud charge in connection with shoddy home loans that the
former Countrywide Financial Corp sold to Fannie Mae
and Freddie Mac and originated in a process called
The four men and six women on the jury also found a one-time
Countrywide executive, Rebecca Mairone, liable on the one fraud
charge facing her.
A decision on how much to penalize the bank would be left to
U.S. District Judge Jed Rakoff. The U.S. Department of Justice
has said it would ask Rakoff to award up to $848.2 million, the
gross loss it said Fannie and Freddie suffered on the loans.