The U.S. Department of Justice is looking to get $848 million out of Bank of America liable because of defrauding Fannie Mae and Freddie Mac when its Countrywide unit sold it bad mortgages. The BofA case was brought by US Attorney for the Southern District of New York, Preet Bharara, who claimed the bank’s Countrywide unit created a program dubbed the “Hustle” to push through defective home loans then sold them to Fannie Mae and Freddie Mac. The verdict is a win for the US government as this is one of the few cases stemming from the financial crisis that it’s taken to trial.
Companies should follow the rules and ethics requirements. Obviously, Bank of America cheated public for itself of interest. These actions leaded the financial crisis which hurt the economy and bank itself as well. Company will lost trust from its customers if they violate marketing ethical and laws. Company’s reputation will be hurt as a result company will lose its long-term profit and even bankrupt because of its fraud for short-term interest. Business ethics is very important for firms future development.