US investment banking giant Bank of America has been hit with a $1bn (£624m) lawsuit from the government over allegations it fraudulently issued "toxic" loans.
A statement from the US Attorney's office alleged mortgage provider Countrywide - which is owned by BoA - labelled faulty mortgages as high quality and sold them to state-controlled mortgage lenders Fannie Mae and Freddie Mac, leading to multi-billion dollar losses, the Telegraph reports. This activity by Countrywide has been described as a "hustle" and "spectacularly brazen in scope" by Manhattan US Attorney Preet Bharara. "Countrywide and Bank of America made disastrously bad loans and stuck taxpayers with the bill," Bharara said. "As described, Countrywide and Bank of America s...
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