More On

U.S. government files $1 billion suit against Bank of America

Officials accuse the financial giant of committing fraud against Fannie and Freddie

Bank of America (BofA) is making headlines once again—and, once again, the U.S. government is breathing down its neck.

Yesterday, the Department of Justice (DOJ) filed suit against BofA, claiming the country’s second-largest financial institution committed fraud when it sold defective residential mortgage loans to Fannie Mae and Freddie Mac. Those loans later defaulted. In the suit, the DOJ says BofA and its subsidiary, Countrywide Financial, generate thousands of these defective loans and cost the government about $1 billion.


Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.