U.S. Department of Justice Sues Countrywide and Bank of America
Bank of America and Countrywide find themselves in the crosshairs of the U.S. Department of Justice, which recently filed a lawsuit involving toxic mortgage loans, as Grant McCool and Jonathan Stempel report for Reuters.
A toxic asset, generally defined, is an asset whose value has declined significantly.
Bank of America, at the behest of parent company Countrywide, is said to have dumped those toxic mortgage loans on Fannie Mae and Freddie Mac, the government-sponsored mortgage companies. This, in turn, caused taxpayers more than $1 billion.
What makes this case ...







