Bank of America sued for $1bn over toxic loans

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US investment banking giant Bank of America has been hit with a $1bn (£624m) lawsuit from the government over allegations it fraudulently issued "toxic" loans.

A statement from the US Attorney's office alleged mortgage provider Countrywide - which is owned by BoA - labelled faulty mortgages as high quality and sold them to state-controlled mortgage lenders Fannie...

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