Tomahawk, WI 9/25/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC) could probably do without the unnecessary attention it gas thus far attracted. This bank needs to focus all of its efforts and energy in coming up with innovative ways of staying business. However much it tries to achieve this, it has always been pegged back with the different reasons pr factors, some of which are quite out of its control. The latest round sees it being accused in regard to its mortgages which the government says amounts to fraud. How will these accusations impact on BAC and will this affect it financially?

 The government accuses BAC of employing what is akin to underhand tactics to approve home loans which are nothing other than deficient. This allegation has been made regarding the bank’s countrywide network and affects its operations right across the entire breadth and length of the U.S. If this case goes to court for determination, it will enter the history books as the first case of its kind to be filed by the government against one of the largest banks in the U.S. Of course, this is not a record which BAC will be proud of and must do everything it can to prove its innocence.

 BAC Still reeling from its Acquisition of Countrywide Financial Corp

 Before this case goes any further, it would be wise to look at BAC more critically. The bank has suffered billions of dollars in losses since it acquired Countrywide Financial Corp in 2008. This was one of the worst acquisitions ever in the history of the U.S corporate world. The latest case is one which has the possibility of causing a lot of financial losses and damage to the reputation of BAC. The bank is accused of having cost both Fannie Mae and Freddie Mac close to $1 billion through its mortgages services which the government says were fraudulently offered.

 BAC Has to Fight Back

 BAC has started fighting back. The case has been in court since 2012 when it was filed. The bank is accused of having committed a serious crime, to which it says that it claims innocence since these losses were as a result of the economic meltdown which occurred globally in 2008, and whose effects continue to be felt to date. What this means is that the case is likely to remain in court until the presiding judge decides whether there is a case of which BAC is expected to answer or not. It is a case which has serious ramifications for BAC if it is found guilty.

 There is no doubt that this is a case which BAC can do without. If there is a way of settling the case before it goes any further, I would advice BAC to pursue this. However, based on what the bank has been doing, I expect there to be a serious fight put up by BAC to ensure that it is found innocent and the allegations made against it by the U.S government set aside. In the public opinion, BAC is yet to win the confidence of the public and this case will not do it any favors in this regard.

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