BofA Heads to Trial Over Countrywide, Fannie Mae & Freddie Mac and 2 More Heavily Traded Stocks to Follow
Bank of America Corp. (NYSE:BAC): Current price $14.14
This week, Charlotte-based BofA goes to trial about allegations that its Countrywide division okayed deficient home loans in a process named “Hustle,” allegedly defrauding Fannie Mae and Freddie Mac. This will mark the government’s first financial crisis case to go to trial against a major bank in regards to defective mortgages, and jury selection is ready to commence in federal court in New York on Tuesday, assuming no last-minute resolution. This trial brings to mind the billions of dollars in legal liabilities that Bank of America has incurred resulting from its 2008 purchase of Countrywide Financial Corp.