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Bank of America was found liable for fraud on Wednesday over defective mortgages sold by its Countrywide unit, a major win for the U.S. government in one of the few trials stemming from the financial crisis.

After a four-week trial, a federal jury in New York found the bank liable on one civil fraud charge. Countrywide originated shoddy home loans in a process called "Hustle" and sold them to government mortgage giants Fannie Mae and Freddie Mac, the government said.

The four men and six women on the jury also found former Countrywide executive Rebecca Mairone liable on the one fraud charge she faced.

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A small step, but a step.

I still await a prison sentence for somebody besides Charlie Engle, a nice guy I met during my involuntary vacation.

Originally posted to The Baculum King on Wed Oct 23, 2013 at 08:37 PM PDT.

Also republished by Good News.

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Comment Preferences

  •  Urinal/Spittoon (25+ / 0-)

    Strange women lying in ponds distributing swords is no basis for a system of government.

    by The Baculum King on Wed Oct 23, 2013 at 08:34:59 PM PDT

  •  civil trial means no perp or perp walk. (4+ / 0-)

    in a small moment, just a little lie. when no one was looking... it just slipped on by...

    (to paraphrase Carly Simon)

    cheerleaders need not apply.

    by kravitz on Wed Oct 23, 2013 at 08:51:01 PM PDT

  •  This farce playing out before us is just that... (11+ / 0-)

    ...the frauds perpetrated against the citizens of this country have gone virtually entirely unpunished until now. What we're seeing now are insignificant tokens and LOTS and LOTS of misinformation and propaganda regarding settlements that, at the end of the day, are ending up being little more than pocket change to these guys.

    Bank of America is right up there, if not much worse than JP Morgan Chase, in terms of the economic terrorism it has gotten away with over the past five-plus years.

    The story, featured in this diary, is like every story before it: pure bullshit. The reality is HERE and HERE.

    Wherein Wall Street throws a few bones (and human sacrifices) to the masses; meanwhile, the real thieves have gotten away scott-free.

    You know that supposed $13 billion fine/penalty that JP Morgan Chase just received? Well, it's now down to a $3 or $4 billion bucks, with some restitution to bond investors, added. (And this story's only a few days old!) Not only that, but JPMC will also receive approx. $4 billion BACK in tax deductions on the far less than $13 billion they have to pay now. And, by the way, JPMC just had a record 2012 in terms of their net earnings. The actual out of pocket for them, for well more than five years of plundering our society, is actually equivalent to roughly 10 weeks of their net earnings in 2012. That's it! Everything else you read and hear about this story is pure crap. IT'S TRULY DISGUSTING HOW BAD ("IN THE TANK") THE MSM REPORTING IS ON THIS STORY.

    This entire matter is a crock of shit, people! Wake up and smell the kabuki!

    But, above all else, don't follow these reports off of a cliff. Thank you!

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Wed Oct 23, 2013 at 09:22:13 PM PDT

    •  This is, by no means, "Good News"... (2+ / 0-)
      Recommended by:
      Lujane, bronte17

      It's just another reminder of how easily people are fooled by the bullshit propaganda spewing forth from the MSM and our government on these matters.

      "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

      by bobswern on Wed Oct 23, 2013 at 09:25:31 PM PDT

      [ Parent ]

  •  My aunt (1+ / 0-)
    Recommended by:
    Rich in PA

    worked at a brewery in Northern California for 40 years. Her heroes were the Teamsters Union and ... Bank of America.

    BOA to her was the myth. You know, it was the Bank of Italy, and then after the earthquake, the owner set up card tables on the ruined streets of San Francisco and lent the people money to rebuild.

    I tried to tell her, no, BOA is not that anymore, but she wouldn't listen. Everything she had was in BOA stock. She wouldn't sell a single share.

    GOP: Bankers, billionaires, suckers, and dupes.

    by gzodik on Wed Oct 23, 2013 at 11:53:21 PM PDT

  •  Two things about this. (0+ / 0-)

    1) It's for something BoA didn't even do.  They were sued as the successor company to Countrywide, which they bought after the fraud. So they're rightly liable but it's not for any of BoA's actual frauds, which are still unpunished.

    2)It would be nice if the government cared as much about banks' frauds against consumers as it did about frauds against the government, or in this case quasi-government.

    You know, I sometimes think if I could see, I'd be kicking a lot of ass. -Stevie Wonder at the Glastonbury Festival, 2010

    by Rich in PA on Thu Oct 24, 2013 at 03:49:26 AM PDT

    •  One more thing about #1 (0+ / 0-)

      My recollection was that BoA did the government a favor taking on Countrywide, so I can understand if BoA is a little pissed off that the government sued them for fraud afterwards.

      You know, I sometimes think if I could see, I'd be kicking a lot of ass. -Stevie Wonder at the Glastonbury Festival, 2010

      by Rich in PA on Thu Oct 24, 2013 at 03:50:56 AM PDT

      [ Parent ]

  •  Of course, they managed to find a woman to blame (0+ / 0-)

    it on.  While I have no doubt that she did something, I also have no doubt that there were men who are having quite a laugh at her expense right now.

    The priest said, "Today's sermon is called 'Liars', but first I have a question. How many of you have read Chapter 66 in Matthew?" Nearly every hand went up. "You're just the group I need to speak to," the priest said. "There's no such chapter."

    by Back In Blue on Thu Oct 24, 2013 at 08:02:31 PM PDT

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