U.S. sues B of A for mortgage fraud - MarketWatch

U.S. sues B of A for mortgage fraud - MarketWatch

The U.S. said Wednesday it has filed a civil lawsuit against Bank of America Corp. BAC +0.85% for mortgage fraud. The suit, filed by the U.S. attorney for the Southern District of New York, alleges that Countrywide, and later B of A after it acquired Countrywide, sold defective residential mortgage loans to Fannie Mae FNMA -0.33% and Freddie Mac FMCC +0.57% that eventually defaulted, resulting in more than $1 billion in "losses and countless foreclosures." The activity is said to have occurred from at least 2007 through 2009. The U.S. attorney said the company cooked up a new loan origination process called the "Hustle," designed to process loans "at high speed and without quality checkpoints. 

Hmm ok so we bailed out the banks with TARP and now we sue the banks we bailed out and now we save the underwater homeowner with said bailout funds we gave them in the first place?

Ya Ponzi would be proud.