Gov't Defends $1B BofA Lawsuit Over 'Defective' Mortgages

Law360, New York (August 13, 2013, 6:24 PM EDT) -- Evidence shows that a Bank of America Corp. unit deliberately wrote and sold faulty mortgages in the run-up to the financial crisis, government lawyers argued Tuesday, asking a New York federal judge to let their $1 billion fraud case against the bank go to trial.

Bank of America subsidiary Countrywide Financial Corp. through a reckless mortgage-originating system called the High-Speed Swim Lane underwrote bad mortgages at a rate far exceeding the industry standards, Assistant U.S. Attorney Pierre G. Armand said at oral arguments before U.S. District...
To view the full article, register now.



Case Information

Case Title

United States of America ex rel. Edward O'Donnell

Case Number



New York Southern

Nature of Suit

Banks and Banking


Jed S. Rakoff

Date Filed

February 24, 2012

Law Firms


Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.