Bank of America wins reversal of $1.27 billion penalty in U.S. mortgage case – Reuters

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Burt Likko

Pseudonymous Portlander. Homebrewer. Atheist. Recovering Republican. Recovering Catholic. Recovering divorcé. Editor-in-Chief Emeritus of Ordinary Times. Relapsed Lawyer, admitted to practice law (under his real name) in California and Oregon. On Twitter, to his frequent regret, at @burtlikko. House Likko's Words: Scite Verum. Colite Iusticia. Vivere Con Gaudium.

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8 Responses

  1. Avatar greginak says:

    So they only breached the contracts but they weren’t being deceptive when they executed them??? So does that not make sense or is that the point of the quote?Report

    • Avatar Kolohe says:

      A breach of contract is a different thing, and has different remedies, than fraud & deception do.Report

    • Avatar James K says:

      Breach of contract is a civil matter, while fraud is criminal.Report

      • Avatar Kim says:

        How about Treason?Report

      • Avatar Will H. says:

        Fraud is also a civil matter, but in the U.S., it’s governed (mostly) by the Uniform Fraudulent Transfer Act.

        The big difference with contract is the “arm’s length” thing.
        Reasonable reliance need necessarily be reasonable, and it assumes all diligent inquiry.

        Granted, I haven’t read the order, and I am not sure what the grounds were for the decision.Report

  2. Avatar Dave says:

    James K:
    Breach of contract is a civil matter, while fraud is criminal.

    Fraud can be civil as well. When the Justice Department went after Standard & Poors for their rating of mortgage bonds, they pursued a civil fraud case. The legal threshold in civil fraud is substantially lower, if I recall what my S&P lawyer friend told me.Report

  3. Avatar Damon says:

    If you didn’t know we were living in a housing bubble….we’ll…

    Sheep get shorn.Report