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Blow to government as judge recommends dismissal of case against BofA

  • Filed last summer, the lawsuit alleges Bank of America (BAC) made misstatements about mortgages sown up in $850M of MBS in 2008, but Judge David Cayer recommends it be tossed for two technical reasons, notably that the government doesn't demonstrate the alleged misstatements were material to the GSE's decision to buy the paper. The government immediately filed notice objecting to the ruling.
  • If upheld, the opinion would undercut the Obama administration's broader attempt to go after the nation's largest banks for their activities prior to the financial crisis.
Comments (18)
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    I love this language, misstatements, accounting irregularities. We don't even use suspects anymore, just persons of interest in this kinder gentler world
    28 Mar, 07:20 AM Reply Like
  • DoowopDave
    , contributor
    Comments (206) | Send Message
     
    About time BAC won a case. I hope it sticks! The government needs to back off. Losing cases may be the only way to slow them down.
    28 Mar, 07:29 AM Reply Like
  • geodan85
    , contributor
    Comments (162) | Send Message
     
    This incompetent anti- business administration will never stop treating business as cash cows to be squeezed for advancement of their re-distribution agenda. However, maybe just maybe, the shakedown attempts in the courts will fail or be delayed until this administration fades into history as one of America's worst ever assembled.
    28 Mar, 07:44 AM Reply Like
  • William Rilling
    , contributor
    Comments (139) | Send Message
     
    I wouldn't interrupt the kind of greedy activities of many of theses banks as noy criminal. This administration is one of the few to take them on and most still in the justice department were appointed bevy Bushead Jr. I am hoping BAC wasn't as bad as some and that's undeniable!
    28 Mar, 08:02 AM Reply Like
  • Iknownothing
    , contributor
    Comments (64) | Send Message
     
    William Rilling....

     

    You live in Colorado...right?
    28 Mar, 09:26 AM Reply Like
  • jackooo
    , contributor
    Comments (1489) | Send Message
     
    If they were criminal, Eric Holder and Barry Obama would have someone in jail. No?
    Instead NO ONE is and when they pay the fine, subsidized by the share holders, they admit no guilt. It's a GREAT Democratic government!!!
    28 Mar, 01:19 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1141) | Send Message
     
    Bout time they stop punishing the current shareholders of (BAC) for the FDIC forcing them to buy the distressed crap just because they were big enough to buy the junk at prices they thought were worth. These FDIC back room deals forced all the liability of OTHERS onto them and then left them stuck being sued by the same people for the previous bank's junk CDOs...
    28 Mar, 08:12 AM Reply Like
  • TBV
    , contributor
    Comments (113) | Send Message
     
    Its about time someone with a fair mind speaking out. More than $50B+ paid already. Lets move on and leave the banks alone. Obama should realize that squeezing banks will not give him the political points he once used to get.
    28 Mar, 09:28 AM Reply Like
  • jackooo
    , contributor
    Comments (1489) | Send Message
     
    The community organizer has his own agenda. He is more intelligent, in a destructive way, then the Republicans know.
    28 Mar, 01:21 PM Reply Like
  • curbyourrisq
    , contributor
    Comments (13) | Send Message
     
    Ya know...this not about anti-business. The use of MERS is completely improper and ended up turning illegal. There are real HOME OWNERS out there who cannot legally sell their homes thanks to MERS, my neighbor is one of them. They can not prove full title thank to the actions of her bank and the way MERS handled everything. You idiots are missing the bigger picture. They ignored and destroyed property law.
    28 Mar, 09:43 AM Reply Like
  • Hello Again 83
    , contributor
    Comments (432) | Send Message
     
    But remember the consumer caused the crises not the banks. People who could afford a Hyundai bought a Porsche thinking their home would always grow in value. Well they gambled and lost. The home values tanked and they defaulted on the mortgages. The consumer caused the crises not the banks.
    28 Mar, 10:00 AM Reply Like
  • Nasty_nas
    , contributor
    Comments (57) | Send Message
     
    And how many Porsche dealers (banks) do you know that lend money or sell cars to people who can only afford a Hyundai (homeowners) ?
    I'm really Long on BAC, but have mixed feelings about the fines. There's got to be some sort of regulation. Deregulation was like in the wild west. If you're leaving banks and consumers to make "good decisions" then that's just being foolhardy and naive.
    28 Mar, 01:25 PM Reply Like
  • jlfg1955
    , contributor
    Comments (5) | Send Message
     
    I still have a CountryWide application they sent to me pre-filled-it said I was African-American (I'm not) and made about 10x more a year than I did. I was supposed to sign it and send it back. THEY put the liar in the loan. Bank of America assigned my mortgage to a trust 8 years after it closed. The crookedness continues and I'm still driving my Geo Metro.
    30 Mar, 02:31 AM Reply Like
  • Richard_Davet
    , contributor
    Comments (16) | Send Message
     
    'notably that the government doesn't demonstrate the alleged misstatements were material to the GSE's decision to buy the paper.'.

     

    Give the judge a copy of the FNMA Guidelines which bac as a major player in the GSE Business Model violated on innumerable occasions. It is what is called breaches of representations and warranties.
    28 Mar, 06:06 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8158) | Send Message
     
    Did a bank bite Mr. Obama on the leg when he was a kid?

     

    Seems he isn't exactly a "free market" kind of guy.
    29 Mar, 10:37 AM Reply Like
  • rexjohnsonjr
    , contributor
    Comments (4) | Send Message
     
    By rights, BAC should be in receivership RIGHT NOW, instead of getting a little haircut and a light rinse.
    30 Mar, 02:56 AM Reply Like
  • Senorlm
    , contributor
    Comments (2) | Send Message
     
    Who created and forced affordable housing? Every time the government interferes disaster seems inevitable.
    31 Mar, 03:03 AM Reply Like
  • Senorlm
    , contributor
    Comments (2) | Send Message
     
    Who created and forced affordable housing anyway? Government interference in the free market inevitably hinders more than helps.
    31 Mar, 03:07 AM Reply Like
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