Alright, BOA gets its fingers slapped for the hustle: The case in Manhattan exposed fraudulent practices in one of Countrywide’s lending programs nicknamed the hustle. Federal prosecutors in Manhattan had argued that the hustle program, which linked bonuses to how fast bankers could originate loans, led Countrywide to “cut corners” as it installed “unqualified and inexperienced” loan processors and tore down internal controls that were in place to root out risky borrowers. “It was from start to finish the vehicle for a brazen fraud by the defendants,” Judge Rakoff wrote in a 19-page opinion, “driven by a hunger for profits and oblivious to the harms thereby visited, not just on the immediate victims but also on the financial system as a whole.” The ruling from Judge Rakoff, an outspoken critic of financial fraud and the government’s uneven efforts to punish it, came as Bank of America and the Justice Department tried to hash out the broad parameters of a possible deal on Wednesday.
Posted on: Thu, 31 Jul 2014 22:39:24 +0000
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