Rakoff Ruling In $1B BofA Case May Halt DOJ Hot Streak
By Max Stendahl
Law360, New York (May 06, 2013, 8:41 PM ET) -- Prosecutors have seized on an obscure 1989 law to launch a series of splashy cases against banks in recent years, but a prominent New York federal judge with a penchant for scrutinizing government actions could soon reverse the trend in a $1 billion mortgage fraud suit against Bank of America Corp.
The Financial Institutions Reform Recovery Enforcement Act, enacted in the wake of the savings and loan crisis, allows the government to sue entities that negatively “affect” the stability of federally insured banks. The law was...