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NEW YORK, Oct 23 (Reuters) - Bank of America Corp was found liable for fraud on Wednesday over defective mortgages sold by its Countrywide unit, a major win for the U. government in one of the few trials stemming from the financial crisis. District Judge Jed Rakoff to decide on the penalty.
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After a four-week trial, a federal jury in New York found the bank liable on one civil fraud charge. Justice Department has said it would seek up to 8.2 million, the gross loss it said Fannie and Freddie suffered on the loans. Arguments on how the judge will assess penalties are set for Dec.Countrywide originated shoddy home loans in a process called "Hustle" and sold them to government mortgage giants Fannie Mae and Freddie Mac, the government said. 5."The jury's decision concerned a single Countrywide program that lasted several months and ended before Bank of America's acquisition of the company," Bank of America spokesman Lawrence Grayson said.