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Bank of America was found liable for civil fraud today.
The large bank was under a four-week trial for the loans it packaged and offered Fannie Mae and Freddie Mac before the financial crisis in 2007 under its Countrywide unit.
According to CNBC, a federal jury in Manhattan found the bank liable for civil fraud.
Recently in the news, Bank of America, JP Morgan, Citibank and SunTrust have come under fire, investigation, and fines for their actions before, during and after the economic crisis in 2007.
Bank of America purchased Countrywide in 2008, reported Reuters.
JP Morgan is in works to pay a $13 billion settlement. How much the bank will pay will be determined by U.S. District Judge Jed Rakoff. So far, the U.S. Department of Justice has asked Rakoff to make the bank pay $848.2 million, which is the amount Freddie and Fannie lost on the loans.
Whether or not the amount will be awarded has not been reported by any new outlets, but it is unfortunate that Bank of America has placed itself in such a situation.
Photo courtesy of Wikimedia Commons.