Government fraud case against Bank of America officially dead

by Ryan Smith29 Nov 2016
The government’s case against Bank of America’s Countrywide unit is officially dead, according to a Wall Street Journal report.

In 2012, the government accused Countrywide of selling toxic mortgage-backed securities during the run-up to the financial crisis.

The government had originally leveled a $1.27 billion-dollar penalty against Bank of America, but that penalty was thrown out by the Second US Circuit Court of Appeals in May, according to the Journal. The appeals court ruled that Countrywide’s actions hadn’t amounted to fraud.

The court also voided a fraud verdict against former Countrywide executive Rebecca Mairone (now Rebecca Steele), one of the few individuals prosecuted for her alleged role in the financial crisis.  Like Countrywide, Steele had been accused of knowingly pushing shoddy mortgage bonds on Fannie Mae and Freddie Mac.

The Manhattan US attorney’s office asked the appeals court to reconsider, but the court denied that request. While the government could have asked the Supreme Court to take up the case, it missed the Monday deadline to do so – meaning the case is officially dead.

“We won. It’s over. Justice is done,” Steele’s lawyer, Marc Mukasey, told the Journal.

Related stories:
Fraud charges against ‘face of housing crisis’ overturned
U.S. government fires back at Bank of America



  • by Gary Heinecke | 11/29/2016 3:31:57 PM

    Sure that was the big banks biggest scam to blame Countrywide who was a mortgage brokers wholesaler and rates ALWAYS beat the banks.
    AMAZING WHAT LOBBYISTS PULLED OFF ALONG WITH THE "Dodd Frank ". By the way does anyone ever cover the fact that Barney Frank owns an AMC. How much did appraisals cost before the government stepped in with this bill and what a conflict this was. The biggest scam for the banks and the government to steal people's equity and blame the brokers. Amazing how banks were lent money for nothing by the Feds and that big banks do not have same rules as everyone else . The CFPB was put in place to "protect the public" yet how much of the funds recovered on the nonsense actual went back to the public and how much to the government.


Should CFPB have more supervision over credit agencies?