by Jerome a Paris
Thu Oct 25th, 2012 at 03:31:18 AM EST
US sues BofA for $1bn over home loans
The US Department of Justice has sued Bank of America for more than $1bn in the first fraud suit over defective home loans sold to government-backed mortgage companies Fannie Mae and Freddie Mac.
The legal action, alleging the bank committed civil fraud, opens up a new front in the protracted reckoning for the US mortgage crisis. It could spell more trouble for BofA’s rivals, many of which are already mired in mortgage litigation.
Justice department recruits unpaid prosecutors
The US Department of Justice has hired 117 prosecutors over the past year and a half to root out wrongdoing but there is one unusual hitch: they are not being paid.
US attorney offices from California to Connecticut have hired “uncompensated special assistant US attorneys” since a department-wide hiring freeze was announced in January 2011.
Any bets on the outcome of the BoA vs DoJ battle?