October 24th, 2012
12:25 PM ET

U.S. suing Bank of America for $1 billion

The U.S. government is suing Bank of America for more than a billion dollars.

The lawsuit claims the bank waged a "multi-year mortgage fraud against government-sponsored entities Fannie Mae and Freddie Mac," according to the U.S. Attorney's office in Manhattan.

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Filed under: Business • Economy • Finance
soundoff (25 Responses)
  1. Sen karen s gayle esq om

    Hello it is a good day when someone takes on a big bank as bank of america.

    October 24, 2012 at 12:37 pm | Report abuse |
    • Beau

      The Problem was with Countrywide. BOA just acquired the problem. The Government pressured BOA to buy Countrywide and now they want to blame them and punish them for Countrywide's errors.

      “For if you suffer your people to be ill-educated, and their manners to be corrupted from their infancy, and then punish them for those crimes to which their first education disposed them, what else is to be concluded from this, but that you first make thieves and then punish them.”
      ― Thomas More, Utopia

      October 25, 2012 at 9:35 am | Report abuse |
  2. Benn

    This is genuine wonderful. I can't believe they are finally doing something to the mega banks. HOOOORAY FOR THE OBAMA ADMINISTRATION ! : )

    October 24, 2012 at 12:44 pm | Report abuse |
    • natasha grace

      Obama gave them money, now he is just trying to get it back while making himself look good... where is all the help he was gonna give the people for their mortgages.. 3% have been helped.

      October 25, 2012 at 4:28 am | Report abuse |
  3. Benn

    If Romney is elected, how much do you bet this lawsuit will be immediately dropped?

    October 24, 2012 at 12:47 pm | Report abuse |
    • Benny

      Um, the 'feds' want the money back. Not the president. Wouldn't matter.

      October 24, 2012 at 2:43 pm | Report abuse |
    • Chickinlove008

      Totally agree on that. They will have Romney in their pocket.

      October 24, 2012 at 5:41 pm | Report abuse |
    • natasha grace

      You gys are so dumb. you have no idea how things work.. Romney would not stop this.. BOA owes the govt. that much and more.. Obama gave them that much and more.. wake up.. Dont talk about things you know nothing about.

      October 25, 2012 at 4:29 am | Report abuse |
  4. Shannon

    Thank you for understanding that the actual bank could have done something wrong. Many people think that families just are not making their payments, when in fact, as in my case they are and the bank has told them not to. I have a letter from the Executive office of Bank of America telling me NOT to make my payment until further notice as they made a mistake on my modification which they needed to correct.....in the mean time they have sold my home from under me. I had made my payment until the date of the letter. Bank of America needs to be held accountable!!! Not everyone had an upside down loan, bought over their head or is a deadbeat. There are actual crimes being committed by Bank of America.

    October 24, 2012 at 12:53 pm | Report abuse |
    • Name s kel

      Shannon I wish you nothing but wellness and that the SOB bank of America pays you back all money owed you with extream intrest paid to you! Good luck!

      October 24, 2012 at 2:04 pm | Report abuse |
  5. Hide Behind

    Good deal. The government needs the money a heck of a lot more than the old defrauded citizens do.

    October 24, 2012 at 2:42 pm | Report abuse |
  6. Jeff Frank (R-Ohio) "Right Wing Insanity"

    Pay the regime through your taxes, "or", pay the regime through your mortgage payments? Either way you are "so screwed".

    October 24, 2012 at 2:43 pm | Report abuse |
  7. Jeff Frank (R-Ohio) "Right Wing Insanity"

    Ohio elections today are reported as being tied. Not on my watch.

    October 24, 2012 at 2:47 pm | Report abuse |
    • Name s kel

      Well its allready well known about republican cheating, lies and attempted voter supression.

      October 24, 2012 at 3:44 pm | Report abuse |
  8. Hide Behind

    While the "Bank" gets sued for what amonts to chump change and will take years of chump change to pay where and tge heck are all the criminals hiding, the Bahamas or within Brownstones or towers in NY?

    October 24, 2012 at 2:57 pm | Report abuse |
  9. Hide Behind

    Lets hope that the use of drones against the white collar criminals are not used.
    Now tgat would realy jump the collateral damaged. Be good for realestate company's and building construction firms though.

    October 24, 2012 at 3:04 pm | Report abuse |
  10. Hide Behind

    They stole, defrauded and made hundreds of billions and the government wants just 1 of them back?

    October 24, 2012 at 3:08 pm | Report abuse |
    • Spot

      That's a lot of money. Think of all the things you could order off the dollar menu at a fast food place. A fella could eat French fries for now on.

      October 24, 2012 at 4:07 pm | Report abuse |
  11. Spot

    If I had a billion dollars I'd order about 50 pepperoni pizzas with extra cheese. And a soda.

    October 24, 2012 at 4:09 pm | Report abuse |
  12. Chickinlove008

    This bank needs to go down. They also had another incident with mutual funds in the Eddie Stern scandal right before the massive bailout. They are truly American GREED.

    October 24, 2012 at 5:40 pm | Report abuse |
    • rlweaver

      Thanks God this subject is coming to light, many will be responding.

      October 25, 2012 at 3:55 pm | Report abuse |
  13. banasy©

    Knew you couldn't stay away, crazy mon.
    This "person's" perception is uniquely skewed and speaks for no one except himself.
    He who hides will never be truly free of the demons that haunt him.
    I won that bet. Coward.
    Now leave me alone.
    You've been tracked. Again.

    October 24, 2012 at 9:20 pm | Report abuse |
  14. jack vessell

    well, BOA received 15 billion in the bailout.....then granted a loan of 15 million to Obama for Democratic Convention...and now the gov't is suing for 1 billion....money going in a circle

    October 24, 2012 at 10:44 pm | Report abuse |
  15. rlweaver

    Well it's about d-time, as a previous Bank Of America account holder, I was overcharged and the bank intenley cause my account to fall in to overdraft charges not once but many times. they would make me beleive I was the cause to have these overdraft keep according look like my checks and withdraws were late which I know was not true they just want to continue to get extra funds from me. About time!!!!!! what is done in the dark with come to light, no matter the length of time! God reveals, they need to persucte thosel at the top for all the fraudlant transactions they are responbile for.

    October 25, 2012 at 3:53 pm | Report abuse |
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