Justice Department Sues Bank of America Over Mortgages
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Bank of America Corp. was sued by the U.S. for allegedly hiding risks from investors in a 2008 deal for $850 million of bonds backed by residential mortgages.
Government lawsuits filed today in federal court in Charlotte, North Carolina, lay out a pattern of intentional acts by bank officials to disguise the mortgages’ risks in disclosures to the U.S. Securities and Exchange Commission and investors. Those accused of fraudulent conduct are identified only by their positions without any names.