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Bank of America 'Hindered' Feds' Investigation

Company refused to let employees answer questions, allow walk-through

By Kevin Spak,  Newser Staff

Posted Jun 14, 2011 7:31 AM CDT
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(Newser) – Given the chance to come clean on its robo-signing scandal, Bank of America instead dug in its heels and “significantly hindered” the federal investigation of its foreclosure practices, according to a HUD official. According to the official's sworn statement filed in Arizona court, BofA lawyers refused “on a number of occasions … to allow employees to answer questions.” So the government is asking a judge to let them interview former employees without BofA lawyers being present, the Wall Street Journal reports.

The HUD statement also alleges that Bank of America gave incomplete responses to two subpoenas for documents, and threw busywork at investigators by, for example, demanding they return or destroy documents. At one point, when HUD tried to conduct a walkthrough of BofA’s document execution group, a lawyer and an executive “asserted that they did not understand the need for a walk-through, and instead showed my staff a set of file cabinets.” A Bank of America spokesman insists the company has “fully cooperated” with investigators.

In this June 3, 2011 photo, members of the Home Defenders League rally in front of the Bank Of America in San Jose, Calif.
In this June 3, 2011 photo, members of the Home Defenders League rally in front of the Bank Of America in San Jose, Calif.   (AP Photo/Paul Sakuma)
A pedestrian walks past a sign protesting Bank of America before the annual shareholders meeting in Charlotte, N.C., Wednesday, May 11, 2011.
A pedestrian walks past a sign protesting Bank of America before the annual shareholders meeting in Charlotte, N.C., Wednesday, May 11, 2011.   (AP Photo/Chuck Burton)
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COMMENTS
Showing 3 of 3 comments
gilgordan
Jun 15, 2011 10:23 AM CDT
Can you imagine, someone in authority requesting the Corporate Vail be lifted for such minor infractions as lying, deceit, corruption, greed, wealth, and executives bonuses. Imagine a Bank named after America, having done such a thing. Unfortunately their 20th Century leader, a former marine, set the culture and it continues today.  The citizens of America should demand past and present executives be brought to the guillotine
NoddaAndYou
Jun 14, 2011 10:51 AM CDT
A US corporation lied? How dare you, sir. The fine gentlemen running our corporations here in the US are nothing less than saints.
zdaydream
Jun 14, 2011 7:42 AM CDT
I hope BoA, CitiGroup and Wall Street along with other who screwed the country get substantial fines.  <:-)
Money • US

 
Bank of America • Countrywide Financial • Countrywide • Department of Housing and Urban Development • foreclosures • mortgage robo-signing scandal

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