double suits

U.S. Sues Bank of America

For selling $850 million in mortgage-backed securities.

The feds are hauling another big one to the courtroom. On Tuesday, the U.S. government filed two suits against Bank of America alleging an $850 million fraud against investors of mortgage-backed securities. The Justice Department and the Securities and Exchange Commission filed the charges, charging the bank with making misleading statements and failing to disclose important information about the sales back in early 2008, when the economic crumble began. “These were prime mortgages sold to sophisticated investors who had ample access to the underlying data, and we will demonstrate that,” Bank of America responded in a statement.