Bank of America Corp Loses Fraud Trial Over U.S. Mortgages-Reuters

Wednesday, 23 Oct 2013 03:41pm EDT 

Reuters reported that Bank of America Corp was found liable for fraud on claims related to defective mortgages sold by its Countrywide unit, a 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 FNMA.OB and Freddie Mac FMCC.OB and originated in a process called Hustle. 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.