BofA requests "hustle" case verdict be thrown out


Bank of America (NYSE:BAC) has asked Judge Jed Rakoff to dismiss the jury verdict which found its Countrywide unit guilty of past mortgage fraud that resulted in a $1.3B penalty.

Known as the "hustle" case, the lawsuit accuses BofA of selling toxic mortgages to Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC), although the bank argues that the evidence at the trial does not support the claims.

The motion comes just one week after BofA agreed to a record $16.7B settlement with the U.S. government to settle charges over its role in mortgages leading up to the financial crisis.

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Comments (8)
  • joecohen18
    , contributor
    Comments (61) | Send Message
     
    U.S. Banks Neared Record Profit in Second Quarter, FDIC Says
    By Jesse Hamilton Aug 28, 2014 10:19 AM PT 0 Comments Email Print
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    U.S. banks had second-quarter net income of $40.2 billion, the second-highest total on record, as lenders cut expenses and workers to compensate for falling trading revenue, the Federal Deposit Insurance Corp. said.

     

    Loan growth, which returned to levels last seen before the 2008 credit crisis, failed to boost revenue as mortgage servicing and refinancing declined, the FDIC said today in its Quarterly Banking Profile. The report overall showed continuing recovery by the industry, even as banks cope with pressure resulting from slow economic growth, FDIC Chairman Martin Gruenberg said in a briefing in Washington. I hope dividend will be attractive
    29 Aug 2014, 04:11 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4375) | Send Message
     
    In short, this beleaguered Bank and its Management continue to fester in inferiority and fraud. And that does not augur well for its long-suffering shareholders.

     

    …funfun..
    29 Aug 2014, 06:42 AM Reply Like
  • Palenque
    , contributor
    Comments (395) | Send Message
     
    BAC is the best buy n hold in town. $35 is the real value of this stock.
    29 Aug 2014, 08:28 AM Reply Like
  • lustyrepast
    , contributor
    Comments (2) | Send Message
     
    The next time there is a banking crisis and the government goes around asking big, healthy banks to take over the suffering institutions any smart CEO should tell the government what they can do with their requests
    29 Aug 2014, 11:50 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    I don't think this is newsworthy. The judge has already made his opinion known in the matter:

     

    <<In a decision last month, Rakoff ordered Bank of America to pay $1.27 billion and Mairone to pay $1 million.

     

    The judge at that time called the Hustle program "from start to finish the vehicle for a brazen fraud" and said the evidence of the fraud was "ample.">>

     

    Why lawyers waste their client's money asking for things they know they won't get is beyond me. Don't the clients supervise them to prevent wasteful padding of legal bills?
    29 Aug 2014, 11:58 AM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    David, with the DOJ settlement done the lawyers don't have much to do anymore!!
    Maroine is also likely to appeal.
    I for one am interested to see how this plays out from a legal perspective - likely to take years.
    29 Aug 2014, 03:38 PM Reply Like
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    They should never have bowed to the pressure and acquired Countrywide's toxicity.
    29 Aug 2014, 01:36 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    BofA is a hustler.
    30 Aug 2014, 01:17 AM Reply Like
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