May
23
Penalty Against Bank of America Overturned in Mortgage Case
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Steve Bailey of Bank of America’s Countrywide unit at a 2008 Senate hearing. A $1.27 billion penalty was overturned Monday. CreditAlex Wong/Getty Images
A federal appeals court dealt a blow to the federal government’s effort to hold Bank of America accountable for the sale of shoddy mortgages before the financial crisis, overturning a $1.27 billion penalty the bank had been ordered to pay in the so-called hustle case.
A three-judge panel ruled on Monday that federal prosecutors had failed to prove that Bank of America’s Countrywide unit had defrauded Fannie Mae and Freddie Mac, the government-backed mortgage firms, when it sold them troubled loans…
Penalty Against Bank of America Overturned in Mortgage Case
