Monday, November 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

Cadets raise cash to help wounded Air Force veteran

By Ian Thompson | From Page: A1, 1 Comment | Gallery

 
Solano cities gather for Thanksgiving meal

By Tony Wade | From Page: A2

Holiday boutiques in full swing

By Susan Winlow | From Page: A3 | Gallery

 
Food Addicts group sets Thanksgiving Day meet

By Susan Hiland | From Page: A3

 
Local government board schedules meeting

By Susan Hiland | From Page: A3

Turkey Trot returns Thanksgiving Day

By Glen Faison | From Page: A3

 
Holiday tree-lighting events begin

By Glen Faison | From Page: A3

 
.

US / World

3 months after Napa quake, recovery rolling

By The Associated Press | From Page: A1

 
US looking past Ebola to prepare for next outbreak

By The Associated Press | From Page: A1, 1 Comment

Anxieties mount as Ferguson waits on grand jury

By The Associated Press | From Page: A1, 1 Comment

 
Thief suspect falls through ceiling, leaves phone

By The Associated Press | From Page: A4

1 killed, dozens injured in California bus crash

By The Associated Press | From Page: A4, 3 Comments

 
San Jose police arrest man after airport chase

By The Associated Press | From Page: A4

Surfer missing off beach south of San Francisco

By The Associated Press | From Page: A4

 
Crew blasts off for International Space Station

By The Associated Press | From Page: A5

US tells Iran to consider nuclear talks extension

By The Associated Press | From Page: A5

 
Damage worse than thought in Japanese earthquake

By The Associated Press | From Page: A5

Joey Chestnut devours turkey to win eating contest

By The Associated Press | From Page: A5

 
Strong quake in west China kills 5; 54 hurt

By The Associated Press | From Page: A5

Boy with fake gun dies after shot by Ohio officer

By The Associated Press | From Page: A5, 4 Comments

 
Israeli Cabinet moves to define Israel as Jewish

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

Former DC Mayor Marion Barry dies at 78

By The Associated Press | From Page: A5

 
Islamic State group recruits, exploits children

By The Associated Press | From Page: A5

Giffords rides in Tucson cycling event

By The Associated Press | From Page: A5

 
Suicide bomber kills at least 45 Afghans

By The Associated Press | From Page: A5

Some 30 horses die in stable fire outside Chicago

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

 
Health care M&A leads global deal surge

By The Associated Press | From Page: A9

.

Living

Community Calendar: Nov. 24, 2014

By Susan Hiland | From Page: A2

 
Today in History: Nov. 24, 2014

By The Associated Press | From Page: A2

 
Horoscopes: Nov. 25, 2014

By Holiday Mathis | From Page: B5

My sister-in-law expects me to pay her for damages, but she won’t pay me

By Kathy Mitchell and Marcy Sugar | From Page: A7

 
Horoscopes: Nov. 24, 2014

By Holiday Mathis | From Page: A7

.

Entertainment

List of winners of the American Music Awards

By The Associated Press | From Page: B6

 
1D, Katy Perry win big at American Music Awards

By The Associated Press | From Page: B6

‘Mockingjay, Part 1′ opens with $123 million

By The Associated Press | From Page: B6

 
TVGrid Nov 25

By Daily Republic Syndicated Content | From Page: B6

TVGrid Nov 24

By Daily Republic Syndicated Content | From Page: A9

 
.

Sports

 
Speights scores 28 as Warriors hold off Thunder

By The Associated Press | From Page: B1 | Gallery

Hyde scores go-ahead TD, lifts 49ers past Redskins

By The Associated Press | From Page: B1 | Gallery

 
Federer leads Swiss past France for Davis Cup

By The Associated Press | From Page: B1 | Gallery

Hamilton answers Rosberg in style to clinch title

By The Associated Press | From Page: B1 | Gallery

 
Revs win 2-1 at Red Bulls in East final 1st leg

By The Associated Press | From Page: B2

Sarvas puts Galaxy past Seattle 1-0 in West opener

By The Associated Press | From Page: B2

 
First lady attends Princeton women’s hoops game

By The Associated Press | From Page: B2

Stacy Lewis sweeps 3 biggest LPGA awards

By The Associated Press | From Page: B2

 
UCLA honors Robinson, retires No. 42 for all teams

By The Associated Press | From Page: B2

Katy Perry to perform at Super Bowl halftime show

By The Associated Press | From Page: B2

 
NFL roundup: Seahawks roll past Cardinals

By The Associated Press | From Page: B2 | Gallery

Athletics acquire 1B Ike Davis from Pirates

By The Associated Press | From Page: B2

 
This date in sports history for Monday, Nov. 24, 2014

By The Associated Press | From Page: B3

 
.

Business

.

Obituaries

Leslie “Esi” Gros

By Nancy Green | From Page: A4

 
Jack I. Johnson

By Glen Faison | From Page: A4

Dorothy Pouge Arnold

By Nancy Green | From Page: A4

 
Arthur Irving Weiner

By Nancy Green | From Page: A4, 1 Comment

.

Comics

Blondie Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose Nov 25

By Daily Republic Syndicated Content | From Page: B4

Zits Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Peanuts Nov 25

By Daily Republic Syndicated Content | From Page: B4

Beetle Bailey Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Sally Forth Nov 25

By Daily Republic Syndicated Content | From Page: B4

B.C. Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Get Fuzzy Nov 25

By Daily Republic Syndicated Content | From Page: B4

Baldo Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Garfield Nov 25

By Daily Republic Syndicated Content | From Page: B4

Frank and Ernest Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Wizard of Id Nov 25

By Daily Republic Syndicated Content | From Page: B4

Baby Blues Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Pickles Nov 25

By Daily Republic Syndicated Content | From Page: B4

For Better or Worse Nov 25

By Daily Republic Syndicated Content | From Page: B4

 
Dilbert Nov 25

By Daily Republic Syndicated Content | From Page: B4

Bridge Nov 25

By Daily Republic Syndicated Content | From Page: B5

 
Sudoku Nov 25

By Daily Republic Syndicated Content | From Page: B5

Cryptoquote Nov 25

By Daily Republic Syndicated Content | From Page: B5

 
Word Sleuth Nov 25

By Daily Republic Syndicated Content | From Page: B5

Crossword Nov 25

By Daily Republic Syndicated Content | From Page: B5

 
Sally Forth Nov 24

By Daily Republic Syndicated Content | From Page: A6

Baldo Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
Get Fuzzy Nov 24

By Daily Republic Syndicated Content | From Page: A6

Zits Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
For Better or Worse Nov 24

By Daily Republic Syndicated Content | From Page: A6

Blondie Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
B.C. Nov 24

By Daily Republic Syndicated Content | From Page: A6

Garfield Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
Baby Blues Nov 24

By Daily Republic Syndicated Content | From Page: A6

Dilbert Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
Rose is Rose Nov 24

By Daily Republic Syndicated Content | From Page: A6

Frank and Ernest Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
Peanuts Nov 24

By Daily Republic Syndicated Content | From Page: A6

Beetle Bailey Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
Pickles Nov 24

By Daily Republic Syndicated Content | From Page: A6

Wizard of Id Nov 24

By Daily Republic Syndicated Content | From Page: A6

 
Bridge Nov 24

By Daily Republic Syndicated Content | From Page: A7

Sudoku Nov 24

By Daily Republic Syndicated Content | From Page: A7

 
Cryptoquote Nov 24

By Daily Republic Syndicated Content | From Page: A7

Word Sleuth Nov 24

By Daily Republic Syndicated Content | From Page: A7

 
Crossword Nov 24

By Daily Republic Syndicated Content | From Page: A7