The U.S. government has asked a judge to order Bank of America Corp (NYSE:BAC) to pay $2.1 billion, increasing its request for penalties stemming from a jury's finding that the bank was liable for fraud over defective mortgages sold by its Countrywide unit.
The request in a court filing late Wednesday followed a December hearing where a judge asked the bank and the U.S. Justice Department to brief him on how he might base the penalties on Countrywide's gains rather than losses resulting from the mortgage sales.
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The Justice Department had previously asked for only $863.6 million based on gross losses it said government-sponsored mortgage finance companies Fannie Mae
The new request for $2.1 billion is based instead on gross revenue generated by the fraud, the government said.
A federal jury in New York in October had found Bank of America and Rebecca Mairone, a former midlevel executive at Countrywide, each liable for fraud in the civil lawsuit.