Friday, October 24, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

US judge slaps $1.3B fine on Bank of America

By
From page B5 | July 31, 2014 |

NEW YORK — A federal judge imposed a $1.3 billion civil penalty against Bank of America on Wednesday for its role in selling risky mortgages to Fannie Mae and Freddie Mac that were advertised as safe investments.

The fine was against Countrywide Financial, which Bank of America purchased in 2008 as the financial crisis was unfolding. It is the latest legal ruling against Wall Street.

A jury found in October 2013 that BofA was liable for Countrywide’s role in selling risky loans to the government housing agencies through a program nicknamed the “Hustle” from August 2007 to May 2008. The jury found that Countrywide executives deliberately misrepresented the quality of mortgages being sold.

In his blunt ruling, Judge Jed Rakoff said the program was “driven by a hunger for profits and oblivious to the harms thereby visited, not just on the immediate victims but also on the financial system as a whole.”

This is the first time a bank or its executives have been found liable under federal law for mortgage fraud leading up to the financial crisis, said Preet Bharara, U.S. Attorney for the Southern District of New York, in a statement. It is also the first time civil penalties have been imposed on a bank or its executives for mortgage fraud.

“(It is) clear that mortgage fraud cannot be viewed as simply another cost of doing business in the financial world,” Bharara said.

A spokesman for Bank of America, which is based in Charlotte, North Carolina, said the bank is exploring its legal options following Rakoff’s decision, including an appeal.

“We believe (the penalty) simply bares no relation to a limited Countrywide program that lasted several months and ended before Bank of America’s acquisition of the company,” BofA spokesman Larry Grayson said.

Countrywide was one of many mortgage companies that sold risky mortgages to Fannie Mae and Freddie Mac leading up to the housing bubble popping and subsequent financial crisis.

Bank of America, JPMorgan Chase and other big Wall Street banks have paid out billions of dollars in legal settlements for their roles in the financial crisis. For JPMorgan, the settlements mostly stemmed from its purchases of Bear Stearns and Lehman Brothers; in Bank of America’s case, it was mainly from its acquisitions of Countrywide and Merrill Lynch.

Rakoff imposed a separate $1 million penalty against Rebecca Mairone, a former Countrywide executive, for her role in the program. Lawyers representing Mairone did not immediately respond to a request for comment.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | 1 comment

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Shanna WieserJuly 30, 2014 - 6:05 pm

    Give this judge a five star rating. It is pass time to make them responsible for the decisions they made to sell fraudulent products to unknowing investors. They grouped them and rated then sold them as safe.WRONGDOING FOLKS GO TO JAIL AS THE CRIMINALS YOU ARE.

    Reply | Report abusive comment
.

Solano News

 
 
‘The Rocky Horror Show’ finds a home on stage

By Amy Maginnis-Honey | From Page: B1

For sale: Solano home with Nike missile bunkers

By Ian Thompson | From Page: A1, 7 Comments | Gallery

 
 
 
Salvation Army debuts giant kettle for holidays campaign

By Robinson Kuntz | From Page: A3 | Gallery

Suisun City police log: Oct. 22, 2014

By Susan Hiland | From Page: A12

 
Fairfield police log: Oct. 22, 2014

By Susan Hiland | From Page: A12

.

US / World

New survey details vast scope of teen dating abuse

By The Associated Press | From Page: A1, 2 Comments

 
Boosters seek to keep Bay Bridge light display

By The Associated Press | From Page: A3 | Gallery

Brown opens up spending in campaign’s final month

By The Associated Press | From Page: A4

 
Driver attacked after ice cream truck kills boy

By The Associated Press | From Page: A4, 8 Comments | Gallery

$50,000 reward to find killer of Anaheim girl, 9

By The Associated Press | From Page: A4, 1 Comment

 
Video shows bikers taunting California officer

By The Associated Press | From Page: A4, 5 Comments

California man guilty in wife’s stabbing death

By The Associated Press | From Page: A4

 
US tech firm fined for underpaying Indian workers

By The Associated Press | From Page: A5, 1 Comment

Suspect in girl’s 1984 killing was police employee

By The Associated Press | From Page: A5

 
PTSD argued in case of Marine jailed in Mexico

By The Associated Press | From Page: A5, 7 Comments | Gallery

Paintings in national parks spark probe, furor

By The Associated Press | From Page: A6

 
For teen with passport, Syria trip can be seamless

By The Associated Press | From Page: A7

Border deaths drop to 15-year low

By The Associated Press | From Page: A7, 3 Comments

 
Prisoner in Afghanistan to be tried in US

By The Associated Press | From Page: A7

US, SKorea agree to delay wartime control transfer

By The Associated Press | From Page: A7

 
US officials: Iraqi army regrouping slowly

By The Associated Press | From Page: A7, 1 Comment

Gary killings put spotlight on abandoned buildings

By The Associated Press | From Page: A7

 
Lawmakers seek to end benefits to former Nazis

By The Associated Press | From Page: A7, 1 Comment

NK experts: US must apologize to free detainees

By The Associated Press | From Page: A10

 
Ebola: A crash course in fear and how it hurts us

By The Associated Press | From Page: A10, 4 Comments

Cremation fears leave empty Ebola beds in Liberia

By The Associated Press | From Page: A10 | Gallery

 
Ex-Mountie hero of shooting at Canada’s Parliament

By The Associated Press | From Page: A10

Canada gunman wanted a passport to go to Mideast

By The Associated Press | From Page: A10

 
NYC mayor: Don’t be alarmed by doctor’s Ebola

By The Associated Press | From Page: A10

NY doctor back from Guinea has Ebola, 1st in city

By The Associated Press | From Page: A12, 1 Comment

 
.

Opinion

 
Planning Commission not listening to the people

By Letter to the Editor | From Page: A11, 14 Comments

Not sure I trust government on Ebola

By Letter to the Editor | From Page: A11, 9 Comments

 
Is America prepared for Ebola or is threat overhyped?

By Ben Boychuk and Joel Mathis | From Page: A11

.

Living

Community Calendar: Oct. 24, 2014

By Susan Hiland | From Page: A2

 
Today in History: Oct. 24, 2014

By The Associated Press | From Page: A2

 
Horoscopes: Oct. 24, 2014

By Holiday Mathis | From Page: A9

.

Entertainment

Week in preview Oct. 24-30, 2014

By Amy Maginnis-Honey | From Page: B1

 
Review: ‘John Wick’ delivers non-stop action

By The Associated Press | From Page: B2

 
Entertainment calendar Oct. 24, 2014

By Susan Hiland | From Page: B4

 
Burns’ series gives PBS a ratings milestone

By The Associated Press | From Page: B5

Q&A: Mick Jagger, the film producer, heads to work

By The Associated Press | From Page: B6, 1 Comment

 
TVGrid

By Daily Republic Syndicated Content | From Page: B6

.

Sports

 
At 1-all, World Series moves to quirky Giants park

By The Associated Press | From Page: B7

Giants’ Hudson to face Royals’ Guthrie in Game 3

By The Associated Press | From Page: B7 | Gallery

 
College notebook: Cordes chosen to try out for USA national team

By Paul Farmer | From Page: B7 | Gallery

Homecoming still on but no game for VCS

By Daily Republic staff | From Page: B8

 
Compton among PGA leaders at Sea Island

By The Associated Press | From Page: B8

Steve Nash ruled out for season with back injury

By The Associated Press | From Page: B8

 
Judge questions $75M NCAA concussion settlement

By The Associated Press | From Page: B8

Arizona men near-unanimous pick by media to win Pac-12

By The Associated Press | From Page: B8

 
Raiders may lose Woodley to biceps injury

By The Associated Press | From Page: B8 | Gallery

No. 6 Oregon looks to extend streak against Cal

By The Associated Press | From Page: B8

 
The Write Way: KC coach’s lineup cards are artful

By The Associated Press | From Page: B8 | Gallery

Prep football capsules: Week 8

By Paul Farmer | From Page: B9

 
Manning, Sanders lead Broncos past Chargers, 35-21

By The Associated Press | From Page: B9 | Gallery

Sports on TV/Local sports for Friday, Oct. 24, 2014

By Paul Farmer | From Page: B10

 
This date in sports history for Friday, Oct. 24, 2014

By The Associated Press | From Page: B10

.

Business

Honda Fit becomes even more intriguing small car

By Ann M. Job | From Page: C1 | Gallery

 
Letting your car find a spot and park itself

By The Associated Press | From Page: C2, 1 Comment | Gallery

Zuckerberg speaks Chinese, Beijing students cheer

By The Associated Press | From Page: B11 | Gallery

 
Cloud business lifts Microsoft’s quarterly results

By The Associated Press | From Page: B11

A blue Christmas for Amazon?

By The Associated Press | From Page: B11

 
.

Obituaries

.

Comics

Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

Zits

By Daily Republic Syndicated Content | From Page: A8

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A8

Baby Blues

By Daily Republic Syndicated Content | From Page: A8

 
Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

Frank and Ernest

By Daily Republic | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

Garfield

By Daily Republic Syndicated Content | From Page: A8

 
Pickles

By Daily Republic Syndicated Content | From Page: A8

B.C.

By Daily Republic Syndicated Content | From Page: A8

 
Peanuts

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Blondie

By Daily Republic Syndicated Content | From Page: A8

Crossword

By Daily Republic Syndicated Content | From Page: A9

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

Bridge

By Daily Republic Syndicated Content | From Page: A9

 
Sudoku

By Daily Republic Syndicated Content | From Page: A9

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9