This final note, in which the federal government gets a rare financial crisis legal win.
A jury in Manahattan found Bank of America guilty of a single count of civil fraud related to defective mortgages sold by Countrywide Financial, the subprime lender Bank of America bought in 2008 as the storm was gathering.
Federal prosecutors are asking for $850 million in damages, which is what they say Fannie Mae and Freddie Mac lost when Countrywide unloaded bad loans.
Not that this is dispositive, as lawyers like to say, but Bank of America might have known it was in trouble when it learned the nickname Countrywide used for the mortgage packaged: Hustle.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.