BofA Fight Won't Blunt DOJ's Favorite Bank Fraud Weapon

Law360, New York (March 28, 2014, 6:48 PM EDT) -- A federal magistrate judge on Thursday put a Justice Department case against Bank of America Corp. using a fraud statute from the 1980s in peril, but the case's limited scope means the government is not likely to abandon its favorite financial fraud fighting tool, attorneys say.

Federal prosecutors have increasingly leaned on the Financial Institutions Reform, Recovery and Enforcement Act, a relic of the 1980s savings and loan crisis, as a vehicle for taking on banks and other financial institutions over alleged violations perpetrated during the housing bubble years.

So far, those financial institutions have been unable to shake claims brought...

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