A federal jury in Manhattan on Wednesday found Bank of America liable for fraud because of thousands of defective mortgages sold by its Countrywide Financial unit, handing the government a victory in one of the few major trials rooted in the financial crisis.
Government efforts to hold Wall Street accountable for crisis-era sins have primarily been resolved through settlements, leading to criticism that financial firms were given an easy way out, albeit an expensive one. Taking the BoA case to trial and winning the judgment could start to change that perception.
On Wednesday, after a four-week trial, a jury of four men and six women said BoA and former Countrywide executive Rebecca Mairone were liable for one count of civil fraud.