Boston, MA 09/22/2014 (wallstreetpr) – According to reports, government of U.S. has decided to take a strict action against Bank of America Corp (NYSE:BAC)’s bid to throw out a jury verdict. As per the information given by government officials, this bid challenges common sense; hence, it should be rejected immediately. BAC had placed a verdict against government’s decision in which it was considered liable for selling arguable loans to Freddie Mac and Fannie Mae. Government asked the bank to pay a penalty of $1.27 billion for its step that initiated financial crisis in 2008-09.
Insights of government’s decision:
During a filing in Court on Thursday night, representatives of the U.S. Department of Justice said that Bank of America Corp (NYSE:BAC)’s countrywide unit lied to the government about the quality of loans being sold. They further added that BAC’s countrywide unit emphasized more on volume and speed than quality, which was completely not acceptable. Government officials also accused the former countrywide official named Rebecca Mairone, who tried to hide the evidence which revealed that she was aware of the quality of loans, but still went forward to sell them anyway. There was a liability verdict put against her, which she tried to reverse without any success.
Jed Rakoff, U.S. District Judge imposed a hefty $1.27 billion civil penalty against BAC in July 2014, after the nine months of verdict. He considered Rebecca Mairone equally responsible for this wrongdoing and asked her to pay $1 million as a penalty. No other individual than her was considered responsible in this case. Government of U.S. said that the argument by Bank of America Corp (NYSE:BAC) spokesmen lacked evidence, common sense and the law. It also said that evidence against the BAC was quite strong and abundant.
Reporters tried to get in touch with Bank of America Corp (NYSE:BAC) representatives, Lawrence Grayson; Spokesperson of BAC declined to comment on this issue while Marc Mukasey, Mairone’s lawyer rejected its premise.
