Boston, MA 10/23/2013 (wallstreetpr) – The Bank of America Corp (NYSE:BAC), which was once pestered by rising litigation costs, which had not only put a stress on its finances, but also put a dent on its image to work in the best interests of the people, has reasons to take a sigh of relief. In a recent judgment, the U.S. Govt. seems to be failing to produce any adverse evidence against the bank’s Country wide unit, in the mortgage fraud, and in the run up to financial crisis.
This has brought to rest a four-week long trial in which the Government had accused Countrywide to have sold under quality mortgages to it, resulting in a huge amount of losses. The case was the first of its kind, in which the Government tried to use a law dating back to 1980, which has been in frequent use now a days by the Government to bring cases against banks.
The case has grown weak ever since Sullivan, a partner at the law firm Williams & Connolly, went ahead and questioned the credibility of the Government’s evidence itself. Another lawyer for Mairone, Michael Hefter of Bracewell & Guiliani, raised questions on the credibility of the former Countrywide executive who filed a whistle-blower lawsuit. Such developments have made the case weak, leading it to be favorable in the interests of the bank. Also, the fact that the person has vested interests, by winning $1.6 million if the Justice Department succeeds in the case, has also raised doubts on the credibility on the veracity of the case.
The whistle-blower is now reported to have personal grudges against the bank, which motivated it to aggravate a matter to vent out his anger against a bank at which he had a minimal role. Such allegations may have seemed to clear the sky for BAC, who has continuously been under scanner for its alleged role.
