Bank of America liable in mortgage fraud: NY jury
NEW YORK: Bank of America Corp., accused of lying about the quality of mortgages it passed along to financial firms Fannie Mae and Freddie Mac,
was found liable for fraud on Wednesday in a civil case the government
said captured the frenzied pursuit of profits at all costs just before
the economy collapsed in 2008.
A Manhattan jury returned its verdict after several hours of deliberations following a monthlong trial that focused on prime mortgages that Bank of America's Countrywide Financial unit completed in late 2007 and 2008. US district Judge Jed S. Rakoff said he would determine on Thursday when a penalty phase will begin.
The verdict was returned against Bank of America, Countrywide and a former executive, Rebecca Mairone.
A Manhattan jury returned its verdict after several hours of deliberations following a monthlong trial that focused on prime mortgages that Bank of America's Countrywide Financial unit completed in late 2007 and 2008. US district Judge Jed S. Rakoff said he would determine on Thursday when a penalty phase will begin.
The verdict was returned against Bank of America, Countrywide and a former executive, Rebecca Mairone.
VIJAY KR YADAV
PGDM, SEM-1
SOU- TIMES OF INDIA
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