The U.S. government is seeking $864 million from Bank of America for the fraudulent loans they gave out under their Countrywide unit that lead to the financial crisis.
The associated press reported that the attorney for the government made the request this Friday.
Last month We reported that after a four week trial, the financial institution was found liable for packaging loans that were not good and selling them, which contributed to the decline of the economy.
At the time how much the institution was going to pay had not been agreed upon, but the U.S. Department of Justice had asked the U.S. District Judge Jed Rakoff to set the amount at $848.2 million, which was how much the government lost due to the loans.
While Bank of America did not engage in civil fraud through their bank, they purchased Countrywide, in 2008, which makes them liable for their actions.
The bank feels as though federal prosecutors are seeking too much money. “We believe the filing overstates the volume of loans and the appropriate measure of damages arising from one narrow Countrywide program that lasted several months and ended before Bank of America acquired the company," Bank of America spokesman Lawrence Grayson said.
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