U.S. District Attorney Sues BofA (BAC) for $1B Over Alleged 'Roboloan' Scheme
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Bank of America (NYSE: BAC) shares are bouncing back from an initial sell-off on word that a new $1 billion suit was filed against the institution over alleged mortgage fraud.
The U.S. Attorney in Manhattan brought a $1 billion case against BofA, citing a scheme to defraud Fannie Maw and Freddie Mac. BofA's Countrywide unit, which it acquired in 2008, was said to have implemented a "roboloan"-type system of lending, generating thousands of fraudulent or defective loans which were then sold to Fannie and Freddie.
Shares dipped just under a percent on the headlines, but are now up 0.6 percent Wednesday.
The U.S. Attorney in Manhattan brought a $1 billion case against BofA, citing a scheme to defraud Fannie Maw and Freddie Mac. BofA's Countrywide unit, which it acquired in 2008, was said to have implemented a "roboloan"-type system of lending, generating thousands of fraudulent or defective loans which were then sold to Fannie and Freddie.
Shares dipped just under a percent on the headlines, but are now up 0.6 percent Wednesday.
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