US wants Bank of America to pay $2.1B in penalties

US wants Bank of America to pay $2.1B in penalties

Credit: AP

FILE - In this April 21, 2008 file photo, a sign for a Bank of America branch is shown in Charlotte, N.C. (AP Photo/Chuck Burton, File)

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by The Associated Press

WCNC.com

Posted on January 30, 2014 at 2:22 PM

NEW YORK (AP) -- 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 Charlotte, N.C., company acquired Countrywide in 2008.
 

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