Bank of America Faces Fraud Lawsuits

(CNN) — Bank of America is facing two lawsuits filed by the U.S. government.

America’s second largest bank is accused of defrauding investors in mortgage-backed securities–the kind at the center of the financial crisis of 2008.

Parallel lawsuits filed by the Department of Justice and Securities and Exchange Commission allege the bank lied about the quality of the home loans involved in the investments.

A bank spokesman denied defrauding anyone, saying, the mortgages were “sold to sophisticated investors who had ample access to the underlying data.”

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