Sunday 6 October 2013

Bank of America faces at trial ex-executive behind whistleblower case

Identify one article dealing with a current legal issue in business??. You will summarize your article to the rest of the class in a short 5 minute presentation in class next week. Written summary is not required.
Article:
Bank of America faces at trial ex-executive behind whistleblower case

http://www.reuters.com/article/2013/09/26/us-bankofamerica-hustle-idUSBRE98M11H20130926

This article is about the U.S Justice Department’s case against Countrywide a unit of Bank of America stating that they defrauded the underwriters Fannie Mae and Freddie Mac by sellng them mortgages that later defaulted. Countrywide has totally misrepresented the quality of their mortgages that were sold. Both Fannie Mae and Freddie Mac incurred major loses of $850 Million on defective loans and has net loses of $131 Million. It has become more transparent that judges are taking better attitude against the banks in such cases. They are definitely doing what they can to hold all bank institutions accountable.
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