Will 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.
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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.
