U.S. derides Countrywide's "Hustle" program, wants $864M from Bank of America


The U.S. government is seeking the maximum penalty allowed under the law from Bank of America (BAC) in connection with a Countrywide loan program dubbed "Hustle."

As its name implies, the program was designed "to speed the production and sale of loans to mortgage-finance firms Fannie Mae and Freddie Mac," WSJ says.

"The nature and circumstances of Defendants' conduct demonstrates an unyielding and brazen arrogance," a court filing alleges. The government wants $864M in penalties.

Here's a BAC spokesman: "We believe the filing overstates the volume of loans and appropriate measure of damages."

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Comments (38)
  • WPSPIKER
    , contributor
    Comments (1149) | Send Message
     
    HEY BAC Why not put out the truth about the FDIC Forcing CW onto you and tell them to shove it, CW is still independent on books and BK it after clawing out all the $ FDIC and Chair woman forced it onto you...
    9 Nov 2013, 09:28 PM Reply Like
  • DeadlyClear
    , contributor
    Comments (80) | Send Message
     
    Aw c'mon...birds of a feather flock together.
    9 Nov 2013, 10:13 PM Reply Like
  • ron tron
    , contributor
    Comment (1) | Send Message
     
    Why isn't BAC responding to this crap on behalf of their shareholders........I agree..........BAC was forced to take on these toxic loans and crap from Countrywide.........why are the shareholders of BAC anymore responsible for CW's bad behavior than the people who lied on their loan docs because CW twisted their arm are. I can't believe that Jamie Dimon and Moynihan aren't screaming uncle........and I certainly believe their are recordings of those conversations someone hidden where Paulson et al told these guys either you pick up WAMU and CW or the country and financial system goes under
    10 Nov 2013, 09:27 PM Reply Like
  • fourchan
    , contributor
    Comments (82) | Send Message
     
    the government should only accept real money ie gold and silver as payment.
    10 Nov 2013, 10:28 PM Reply Like
  • justaminute
    , contributor
    Comments (1552) | Send Message
     
    Citizens should demand a currency backed by gold.
    10 Nov 2013, 11:20 PM Reply Like
  • Don Dion
    , contributor
    Comments (4700) | Send Message
     
    Sometimes as a CEO of a major company, you have to say NO.
    11 Nov 2013, 03:10 PM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    So many people don't understand - BAC takeover of CFC was Lewis greed - not government intervention.
    13 Nov 2013, 06:13 PM Reply Like
  • READ THE PAPERS
    , contributor
    Comments (269) | Send Message
     
    AS A LIFELONG DEMOCRAT I AM NOW ON THE SIDE OF THOSE "TEA PARTY EXTREMISTS" WHO ARE MOVING TO IMPEACH "ATTY GENERAL" ERIC HOLDER, CLEARLY THE MOST BRAZEN, SHAMELESS AND ETHICALLY BANKRUPT RIPOFF ARTIST SINCE AL CAPONE WHO STARTED HIS CAREER SHAKING DOWN GROCERY STORES IN CHICAGO IN THE 1930'S. HOLDER'S FAILURES AND INCOMPETENCE IN ALL HIS OTHER "PROSECUTORIAL EFFORTS" ARE NOW WELL DOCUMENTED. HE HAS BEEN A FAILURE IN GOING AFTER "HARD TARGETS" LIKE DRUG TRAFFICKERS, GUN RUNNERS AND MASS MURDERERS USING FIREARMS SO NOW HE HAS TO GO AFTER "SOFT TARGETS" LIKE BANKS.
    9 Nov 2013, 09:44 PM Reply Like
  • Coalfan
    , contributor
    Comments (115) | Send Message
     
    Does shouting help you sleep at night?
    10 Nov 2013, 07:52 AM Reply Like
  • Trayjay1
    , contributor
    Comments (298) | Send Message
     
    Gotta make someone (else) pay, because it certainly wasn't government policy to "get everyone who wanted it a home" that created the conditions for a crisis. Hey, it's just business as normal and BAC, well, BAC is the most hated bank in America, right? It'll settle for $400M with no sweat off the "back"...let's move on.
    9 Nov 2013, 09:56 PM Reply Like
  • Trayjay1
    , contributor
    Comments (298) | Send Message
     
    Gotta make someone (else) pay, because it certainly wasn't government policy to "get everyone who wanted it a home" that created the conditions for a crisis. Hey, it's just business as normal and BAC, well, BAC is the most hated bank in America, right? It'll settle for $400M with no sweat off the "back"...let's move on.
    9 Nov 2013, 09:56 PM Reply Like
  • DeadlyClear
    , contributor
    Comments (80) | Send Message
     
    Look at the Mortgage Electronic Registration Systems, Inc. patents and documents. Fannie, Freddie and BofA (NationsBank) were at the helm of the MERS Blur Gang. They all knew what each other were doing - no one was naive. The intent was to defraud the consumer into thinking they were actually buying a mortgage when it turns out these NTMs were actually securities before the consumer signed the docs. See on DeadlyClear: http://bit.ly/17VyVTM
    9 Nov 2013, 10:11 PM Reply Like
  • mphill47
    , contributor
    Comments (602) | Send Message
     
    Heavy handed Obama admin fleecing the wrong guys.
    9 Nov 2013, 10:45 PM Reply Like
  • Don L.
    , contributor
    Comments (17) | Send Message
     
    What a JOKE ! Refresh your memory as I did, Google :"News about former Countrywide Chgm/CEO Angelo Mozilo" and read Wikipedia's account . "CW cheated Fannie Mae & Freddie Mac out of MORE THAN A BILLION dollars" . Mizilo took home MORE THAN $500,000,000.00 (That's MILLIONS), was indicted for SECURITIES FRAUD & INSIDER TRADING, made a DEAL with the "justice (Hah) DEPARTMENT", paid a PERSONAL fine of $47.5 million and got IMMUNITY from further CRIMINAL prosecution . And, he is NOW "living-in-luxury-ever... . The site will also provide the names of FORTY-THREE (43) Fannie Mae EXECUTIVES, including it's former CEO, Jim Johnson, given "VIP" mortgages by Mozilo. PLUS, a list of a "DOZEN" government "Big Shots", Including House Speaker Nancy Pelosi & SON, former US Banking Committee Chgm., Christopher Dodd, Senate Budget Committee Chgm., Kent Conrad, and many more . Mozilo was fined "about" NINE PERCENT (9%) of the MILLIONS he STOLE . Followed up now with a CW/BAC "fine" of, MAYBE $863. million to "pay back" the MORE THAN $1, 000,000,000.00 (BILLIONS) SWINDLED from Fannie Mae & Freddie Mac . The "fine is the MAXIMUM ALLOWED"! Apparently our "leaders" have even set "fine" LIMITS for BILLIONAIRE SWINDLERS . Do the math, it PAYS to OWN politicians and other government elites . In FAIRNESS however, our "leaders" are clawing back BILLIONS from the us, the UNWASHED MASSES, by CUTTING FOOD STAMPS for the POOR . - - So, lets hear it for our 'leaders", Atty. Gen., Eric Holder, and JUSTICE !!! Cordially, D. J. Ludwig
    9 Nov 2013, 11:10 PM Reply Like
  • eager1
    , contributor
    Comments (163) | Send Message
     
    Once this is settled Obama will have another lawsuit, done with taxpayer money, to put against BAC and then another and then another. Of course Fanne Mae is totally innocent because they are owned by the government and they can't be expected to do due diligence.

     

    Jack Welsh was right: "Obama is spending all his time and money trying to punish people and he should be spending it trying to get businesses growing and hiring."

     

    So BAC has to lawyer up and have tremendous reserves. So loans to businesses dry up and we continue to have s-l-o-w growth. Of course if you are a extreme socialist you could care less because business growth is not your goal. Sucking money into government is your goal.

     

    Now where do you suppose all the money from these law suit settlements go? To people hurt by the bad guys? To paying down the national debt? Take a guess.
    9 Nov 2013, 11:39 PM Reply Like
  • Shelby Cardozo
    , contributor
    Comments (1588) | Send Message
     
    Actually,

     

    The government has replaced the tax and spend government, with the tax and fine and spend government. You have the remember, once the wallet has been opened, it will not be closed. BAC is an open wallet. File lawsuit. Collect millions.

     

    The government is no different that looters in a riot. It's just taking what it feels like it deserves.
    10 Nov 2013, 01:26 AM Reply Like
  • justaminute
    , contributor
    Comments (1552) | Send Message
     
    American government is an obscene racket.
    9 Nov 2013, 11:46 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11164) | Send Message
     
    BAC is like a big mama hog lying on her side and the government is like the little piggies suckling away.
    10 Nov 2013, 01:57 PM Reply Like
  • justaminute
    , contributor
    Comments (1552) | Send Message
     
    Reminds me of how the State governments extorted "Big Tobacco" under the guise of "helping the children" and then spent the money on pet projects and\or sold bonds based on the under-lying revenue stream to get their hands on the money immediately to satisfy their
    insatiable greed.
    10 Nov 2013, 02:29 PM Reply Like
  • al roman
    , contributor
    Comments (16940) | Send Message
     
    Banks used to be about savings and loan.
    Home ownership was the base of the old economy
    until the Genies melted that up and all that investment
    went into no mans land and took part of the life of the engine
    with it.Now every body and his brother owe's more than they
    will ever be able to pay in a life time.that's what we invest in
    The Genies are still at the helm.
    10 Nov 2013, 03:26 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13369) | Send Message
     
    The penalties are a joke. BAC Gets more out of the government than staying under the protection of the government through its TBTF position, dumping its home loans on Fannie and Freddie, and its easy access to zirp discount rates. They won't do anything to jeopardize this cushy relationship simply because paying such fines is a pittance compared to the profits they derive from dumping on US taxpayers and getting a unfair advantage against small banks without TBTF clout.
    10 Nov 2013, 04:51 AM Reply Like
  • al roman
    , contributor
    Comments (16940) | Send Message
     
    "Did you read the small print"
    10 Nov 2013, 08:12 AM Reply Like
  • deercreekvols
    , contributor
    Comments (9484) | Send Message
     
    Why does the maximum penalty not involve jail time?

     

    Until some top level executives are sent to jail the fines are meaningless. Large banks will continue to pay fines and still turn a profit.
    10 Nov 2013, 08:30 AM Reply Like
  • al roman
    , contributor
    Comments (16940) | Send Message
     
    That's the whole purpose.
    10 Nov 2013, 08:36 AM Reply Like
  • La Rue
    , contributor
    Comments (899) | Send Message
     
    Has anyone seen or know where Jon Corzine is ???
    10 Nov 2013, 08:53 AM Reply Like
  • al roman
    , contributor
    Comments (16940) | Send Message
     
    What was that song by AC/DC now ?
    10 Nov 2013, 08:58 AM Reply Like
  • al roman
    , contributor
    Comments (16940) | Send Message
     
    "Fine print is just negligence"it is so,but not necessarily"
    10 Nov 2013, 09:22 AM Reply Like
  • wally R
    , contributor
    Comments (4) | Send Message
     
    The federal govt. should never be trusted to do the right thing and under Obama it would be a great model for Capone, Luciano, and Lansky to follow. Why do they let Dodd, Frank, Fannie, Freddie, Angello, Johnson, Raines, Pelosi ect. skate. Bac just gave a veteran keys to a house. Why can't programs like that be set up. No lawyers no Holder and a benefit to the most deserving group in America. Have a great Veterans Day from a VfW member.
    10 Nov 2013, 09:47 AM Reply Like
  • al roman
    , contributor
    Comments (16940) | Send Message
     
    We are all going to be following Vinne the chin on....before this is over.
    10 Nov 2013, 10:50 AM Reply Like
  • donbcms
    , contributor
    Comments (38) | Send Message
     
    Feb., 2004; BAC @ $84. - Remember??
    10 Nov 2013, 12:25 PM Reply Like
  • neggy
    , contributor
    Comments (3) | Send Message
     
    We as shareholders should make known the complete blackmail occurring here at the hand of the feds. Another "wealth redistribution" effort on the earning invested by hard working Americans - to cover up their mistake
    10 Nov 2013, 12:26 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    I'd rather talk about or know why BAC's stock jumped.
    If you know the history behind Country Wide and how BAC came to purchase it, nothing is a surprise.
    The two protagonists behind the worst deal for shareholders of BAC are home and have escape the long arm of the law.
    10 Nov 2013, 12:26 PM Reply Like
  • Adrestia
    , contributor
    Comments (29) | Send Message
     
    Get in bed with the government and wake up with a social disease - it's how this administration works folks, unless, that is, you're pushing 'green' technology and donated heavily to the right individuals, in which case you get taxpayer money and are free from any scrutiny.
    10 Nov 2013, 12:26 PM Reply Like
  • eager1
    , contributor
    Comments (163) | Send Message
     
    My favorite Barney moment is when explained to CNBC that he honestly felt he could run Bank of America much better than the current CEO. Amazing.
    10 Nov 2013, 08:18 PM Reply Like
  • BTM
    , contributor
    Comments (486) | Send Message
     
    Between this and JP Morgan, the gov better make sure there is never another banking crisis like we had in 07/08.

     

    Because they gonna find it real hard to get surviving banks to take over the failing banks in the future.
    10 Nov 2013, 08:38 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4911) | Send Message
     
    Many US politicians complained about more credit for more borrowers for decades. It was a constant drumbeat and then someone solved it with subprime. There were some side effects however. Understatement of the century thus far.
    10 Nov 2013, 09:10 PM Reply Like
  • oliverdavis56
    , contributor
    Comments (13) | Send Message
     
    I would save wamu over countrywide
    12 Nov 2013, 03:08 AM Reply Like
  • oliverdavis56
    , contributor
    Comments (13) | Send Message
     
    Countrywide and the wheel of fortune, just watch out for bankrupt
    12 Nov 2013, 03:08 AM Reply Like
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