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
- Yes, Republicans can impeach President Obama
- Why Texas' abortion rates aren't falling as quickly as everyone expected
- Why all drugs should be legal. (Yes, even heroin.)
- 10 things you need to know today: July 29, 2014
- Here's the schedule very successful people follow every day
- The weird obsession that's ruining the GOP
- Are there too many good shows on television?
- 7 ideas from ancient thinkers that will improve your modern life
- Comic-Con 2014: Everything we learned about Avengers 2, Batman v. Superman, and more
- How to trim $500 from your monthly spending
Subscribe to the Week