Bank of America Gets Sued ... Again

Bank of America (NYSE: BAC  ) is facing yet another lawsuit, this one brought by the Department of Justice in regards to a program known as "The Hustle," which was run by Countrywide from 2007 to 2009. Allegedly, the program eliminated quality checks and concealed defects as mortgages were first originated, and then sold, to Fannie Mae and Freddie Mac. The DOJ is looking to collect upwards of $1 billion from this suit.

Watch the video below for Fool.com analyst Matt Koppenheffer's full synopsis, including whether -- and to what extent -- BAC's latest legal issues should affect one's investment thesis. Matt also looks at some of the finer nuances and questions raised by the story, namely, the assignment of responsibility when multiple parties are involved, and the differentiation between recession-based loss versus outright fraud.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 26, 2012, at 7:11 AM, Rusty56 wrote:

    Your articles are all pretty lame with the same BS over and over again. Do people really buy what your selling, these bogus reports, seriously?

  • Report this Comment On October 26, 2012, at 4:27 PM, TMFKopp wrote:

    Rifleman... If you have something substantive to bring up I'm happy to address it. Otherwise your comment is pretty lame. Just saying.

    Matt

  • Report this Comment On October 26, 2012, at 6:12 PM, Wade32ru wrote:

    I totally agree with what you are saying regarding Fannie and Freddy doing their own due diligence. Always buyer beware, right?

  • Report this Comment On October 26, 2012, at 10:15 PM, TMFKopp wrote:

    @wade32ru

    It's a two-way street for sure. There's surely blame to be laid at countrywide's feet, but there's this sense that fannie and Freddie were somehow exempt from having to do their own diligence on what they were buying.

    Don't get me wrong - I'm no bank apologist, but I'd like to see the right people held responsible so there's a reason for folks to think twice before doing something like this again. Instead, it seems there's just a lot of lashing out against whatever institution is visible, has money, and is an easy target.

    Matt

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