Subprime Trial

The US government wants Bank of America Corp to fork over $863.6 million in damages after a federal jury found it guilty of selling subprime mortgages, the defective securities largely responsible for triggering the Great Recession in 2008.

  RT

Really? A bank pays for deceiving regular people?

The US Justice Department argued that Countrywide, which was bought by Bank of America in 2008, committed fraud by selling shoddy home loans over a two-year period to Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) designed to enhance the flow of credit to targeted sectors of the economy.

Oh. Okay, for deceiving the US government. 

The amount of the penalty is based on gross losses Fannie Mae and Freddie Mac incurred on the Countrywide mortgages, the government said.

You poor slobs who fell for it and lost your homes…well, don’t be stupid next time.

The government also demanded penalties against Rebecca Mairone, a former executive at Countrywide unit who was cited in the lawsuit as having repeatedly ignored warnings about the "Hustle," otherwise known as the "High Speed Swim Lane."

[...]

Mairone, who worked at Countrywide and Bank of America from 2006 until 2012, is now employed with JPMorgan Chase & Co. She has denied any wrongdoing.

No criminal charges have been filed against Mairone or any other individual in connection with the alleged misconduct.

Well, of course not.

Bank of America is scheduled to respond to the government's penalty request by November 20.

It’s a penalty REQUEST?

Disregard this post.