Federal prosecutors filed a lawsuit against Bank of America on Wednesday over an alleged mortgage scheme that "defrauded the government during the depths of the 2008 financial crisis." In the civil complaint, which seeks $1 billion in damages, the Justice Department implicates a home loan program known as the "hustle," a venture that Bank of America inherited with its purchase of Countrywide Financial during the financial meltdown. Prosecutors say the effort was designed to churn out mortgages at a rapid pace without proper checks on wrongdoing. Bank of America then sold the "defective" loans to Fannie Mae and Freddie Mac, the government-controlled housing giants, "which were stuck with heavy losses and a glut of foreclosed properties." Bank of America has not yet commented on the allegations.
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- The U.S. Marines are developing laser weapons. Here's why.
- Rise of the machines
- 10 things you need to know today: October 20, 2014
- 3 horrific inaccuracies in Homeland's depiction of Islamabad
- How to be the most productive person in your office — and still get home by 5:30 p.m.
- Gamergate has backfired spectacularly on its nincompoop perpetrators
- Ban PowerPoint!
- 43 TV shows to watch in 2014
- 6 things the happiest families all have in common
- The uncomfortable truth in The Giving Tree
Subscribe to the Week