The United States sued Bank of America Wednesday for more than $1 billion for allegedly having sold dodgy mortgages to state-controlled mortgage financers Fannie Mae and Freddie Mac.
The government charged that Countrywide — the mortgage giant now owned by Bank of America — labelled defective mortgages as high-quality and sold them to the two companies, resulting in billions of losses.
US sues Bank of America for $1bn over bad mortgages
