Home › Forums › Financial Markets/Economics › BofA/Countrywide Lawsuit overturned
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May 24, 2016 at 8:24 AM #21982May 24, 2016 at 10:04 AM #797966bewilderingParticipant
[quote=HLS]
And now, a federal appeals court is siding with the bank. The appeals panel says that the government didn’t prove that the bank had intended to commit fraud when it sold packages of home loans to investors.[/quote]The bank say they did not intend to commit fraud. That means they admit they were incompetent, rather than malicious. Presumably they will still be punished.
May 24, 2016 at 10:50 AM #797969HLSParticipantWill be interesting to see if this goes away…
the case has been going on for a few years.
Legal perspective of fraud, intent & what’s criminal.
Taxpayer potentially on the hook for losses.
******************************Bank of America Corp.’s Countrywide Financial unit was exonerated of allegations that it sold defective residential mortgage loans to Fannie Mae and Freddie Mac with an appeals court throwing out a judgment against the bank of more than $1.2 billion.
Prosecutors failed to prove at trial that the bank intended to defraud the government, the three-judge appeals panel in New York ruled on Monday. The government only showed the bank sold mortgages that it knew weren’t of the quality promised in its agreements. As a result it might be liable for breach of contract, but not fraud, the panel said. The court ordered the trial judge to enter a judgment in favor of the bank.
The U.S. could ask the entire panel of the federal appeals court judges to re-hear its challenge to the decision.
May 24, 2016 at 11:21 AM #797970bobbyParticipant[quote=bewildering][quote=HLS]
And now, a federal appeals court is siding with the bank. The appeals panel says that the government didn’t prove that the bank had intended to commit fraud when it sold packages of home loans to investors.[/quote]The bank say they did not intend to commit fraud. That means they admit they were incompetent, rather than malicious. Presumably they will still be punished.[/quote]
there’s no law against being stupid.
they know they were selling a crock of poopoo but they were blinded by greed. the onus was on the gov to prove intent but couldn’t.May 24, 2016 at 2:05 PM #797985njtosdParticipant[quote=bewildering][quote=HLS]
And now, a federal appeals court is siding with the bank. The appeals panel says that the government didn’t prove that the bank had intended to commit fraud when it sold packages of home loans to investors.[/quote]The bank say they did not intend to commit fraud. That means they admit they were incompetent, rather than malicious. Presumably they will still be punished.[/quote]
It’s a little more complicated than that. This could just be an example a very poor lawyering. The court said that the Government did not prove that the bank intended to commit fraud. Sometimes lawyers get so wound up in believing that they are right that they forget to lay out all of the pieces of the puzzle .
May 24, 2016 at 5:49 PM #798012no_such_realityParticipantInteresting, Freddie just underwrote $1.2 billion in loans to the Irvine company on a subset of their properties.
The Irvine Company gets $1.2B in loans on apartments.
I didn’t realize Freddie guaranteed Major businesses loans via K-certificates.
10 year notes at 4.3%.
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