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.
Things are heating up for Bank of America! To give you the full rundown on the most talked-about bank out there, Fool.com analyst Anand Chokkavelu, CFA, has authored an in-depth premium research report on BAC, detailing the bank's prospects and spelling out reasons to buy and sell. He'll also be providing a year's worth of guidance and updates as key developments occur, including analysis of the bank's quarterly earnings. Don't miss out on this invaluable resource -- Click here now to access your copy today.