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 11 worst fast food restaurants in America
- 7 things the world's happiest people do every day
- 7 grammar rules you really should pay attention to
- What would a U.S.-Russia war look like?
- 5 tricks to making a mind-blowing burger
- Why are so many parents being arrested?
- 9 things you probably didn't know about the moon
- Israel has only two choices: Eliminate the Palestinians or make peace
- I hate Ayn Rand — but here's why my fellow conservatives love her
- The weird obsession that's ruining the GOP
Subscribe to the Week