Bank of America close to beating DOJ $850M RMBS fraud suit

he U.S. Department of Justice has not proven its charges that Bank of America (BAC) misled investors about the quality of loans bundled into $850 million in mortgage-backed securities.

That’s the word from presiding U.S. Magistrate Judge David Cayer, who is recommending that the case be dismissed.

Attorneys for the Justice Department can appeal the recommendation for dismissal.

The case against Bank of America is one in a series of prosecutions being brought by U.S. attorneys against financial institutions under the Financial Institution Reform, Recovery and Enforcement Act of 1989. The law allows the government to sue for fraud rather than just charge institutions with a crime when the alleged fraud is against a federally insured institution.

Source and Full Story Here: http://www.housingwire.com/articles/29472-bank-of-america-close-to-beating-doj-850m-rmbs-fraud-suit