Bank of America Now Owes $864 Million to U.S. Government

NEW YORK -- Federal prosecutors want Bank of America to pay about $864 million over losses incurred by the government after it bought thousands of home loans made by Countrywide Financial during the housing boom.

U.S. attorney Preet Bharara made the request in documents filed late Friday with the U.S. District Court in Manhattan.

Last month, a jury found BofA, which acquired Countrywide in 2008, liable for knowingly selling Fannie Mae and Freddie Mac thousands of bad home loans between August 2007 and May 2008.

Prosecutors asked the court to make BofA's penalty equal to the maximum losses racked up by the government-run mortgage buyers.

BofA, based in Charlotte, N.C., says the U.S. is overstating the volume of loans and damages arising from the Countrywide program.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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