You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Dollar General raises Family Dollar bid to $9.1 billion
    GOODLETTSVILLE, Tenn. – Dollar General upped its bid for the rival Family Dollar chain and addressed an earlier roadblock, saying it will more than double the number of stores it would shed to ease the antitrust concerns of its takeover target.
  • Crossovers help drive SUV revival
    SOUTHFIELD, Mich. – The SUV is dead. Long live the SUV. Not so long ago, the sport utility vehicle seemed on the road to extinction.
  • McDonald's tries to change image
    NEW YORK – At a dinner McDonald's hosted for reporters and bloggers, waiters served cuisine prepared by celebrity chefs using ingredients from the chain's menu.
Advertisement

Bank of America may pay $2.1 billion

– Federal prosecutors wants a judge to order Bank of America to pay $2.1 billion in penalties for knowingly selling bad home loans, more than double the amount the government had sought in the case.

In documents filed Wednesday, the government said it wants Bank of America to make a payment based on its total revenue from the fraud instead of the profit it made.

The U.S. had wanted Bank of America to pay about $864 million over losses it incurred after it bought thousands of home loans made by Countrywide Financial in 2007 and 2008 during the housing boom. A jury found Bank of America liable for knowingly selling the bad loans to mortgage giants Fannie Mae and Freddie Mac. The jury also returned the verdict against Countrywide and former executive Rebecca Mairone.

U.S. Attorney Preet Bharara made the request for the penalty, saying it is the maximum allowed, in documents filed Wednesday with the U.S. District Court in Manhattan.

Bank of America spokesman Lawrence Grayson said the government is seeking too much money and has conceded that the losses from the loans were less than $864 million.

“This claim bears no relation to a limited Countrywide program that lasted several months and ended before Bank of America’s acquisition of the company,” he said. “We will present the relevant facts in a detailed response soon.”

Advertisement