Judge clears the way for BofA fraud suit to go to trial

08/28/2013 | Reuters

U.S. District Judge Jed Rakoff has cleared the way for a U.S. government lawsuit against Bank of America, regarding its sale of billions of dollars of toxic mortgage loans to Fannie Mae and Freddie Mac, to go to trial next month. Rakoff, in an order made public Tuesday, rejected the bank's effort to dismiss the case. The Department of Justice alleges that Countrywide, acquired by Bank of America in 2008, caused more than $1 billion in taxpayer losses by selling defective home loans to the housing giants.

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