The Department of Justice has filed a lawsuit against Bank of America over mortgage-backed securities.
FOX News Radio’s Steve Taylor reports from Washington:
The Justice Department says Bank of America sold $850 million worth of securities that were backed by home mortgages that the bank knew were more risky than it was telling investors. The Department says the bank failed to do proper diligence in putting together the securities, folded in too many questionable mortgages and lied to investors. Justice says this happened in 2008, months before the housing bubble burst.
In Washington, Steve Taylor, FOX News Radio.
Editor’s Note: Bank of America said it will refute the government’s allegations in court.
READ a statement from Attorney General Eric Holder:
“Today’s filing marks the latest step forward in the Justice Department’s ongoing efforts to hold accountable those who engage in fraudulent or irresponsible conduct.
As this action proves, President Obama’s Financial Fraud Enforcement Task Force will continue to take an aggressive approach to combating financial fraud and uncovering abuses in the residential mortgage-backed securities market. As we proceed with this case, and pursue a range of additional investigations, we will continue to use every tool, resource, and appropriate authority to ensure stability, accountability, and – above all – justice for those who have been victimized.”