Rakoff Casts Doubt On Gov't Claims In $1B BofA Fraud Suit

Law360, New York (April 29, 2013, 10:58 PM EDT) -- A federal judge on Monday indicated that he had doubts about an aspect of the government’s $1 billion suit against Bank of America Corp. over allegedly bad mortgages, questioning its novel use of a law designed to protect banks from fraud.

U.S. District Judge Jed S. Rakoff said he was “troubled” by claims made under the Financial Institutions Reform Recovery Enforcement Act, an anti-fraud law passed in the wake of the 1980s savings-and-loan crisis.

FIRREA allows the government to bring civil fraud suits against entities that...
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