Bank of America Gets Sued ... Again
Bank of America (NYS: BAC) is facing yet another lawsuit, this one brought by the Department of Justice in regards to a program known as "The Hustle," which was run by Countrywide from 2007 to 2009. Allegedly, the program eliminated quality checks and concealed defects as mortgages were first originated, and then sold, to Fannie Mae and Freddie Mac. The DOJ is looking to collect upwards of $1 billion from this suit.
Watch the video below for Fool.com analyst Matt Koppenheffer's full synopsis, including whether -- and to what extent -- BAC's latest legal issues should affect one's investment thesis. Matt also looks at some of the finer nuances and questions raised by the story, namely, the assignment of responsibility when multiple parties are involved, and the differentiation between recession-based loss versus outright fraud.
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The article Bank of America Gets Sued ... Again originally appeared on Fool.com.Fool contributor Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America, Citigroup Inc , JPMorgan Chase & Co., and Wells Fargo & Company. Motley Fool newsletter services recommend Wells Fargo & Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.