U.S. Sues Bank Of America For $1 Billion, Alleging Mortgage Fraud

According to Bloomberg News, the U.S. is suing Bank of America — the second largest financial institution in the country — for $1 billion, alleging that the bank engaged in a scheme “to defraud Fannie Mae and Freddie Mac,” the government backed mortgage giants. Bank of America has already paid billions in settlements to investors who alleged that the bank misled them during the financial crisis, and it participated in the $25 billion national foreclosure fraud settlement.