Bank of America (BoA) has been found liable for civil fraud for selling defective mortgages.
The ruling is said to be a major victory for the U.S. government in its aggressive effort to hold banks accountable for their role in the housing crisis.
A federal jury in Manhattan found the Charlotte bank in North Carolina liable for selling home loans to government mortgage giants Fannie Mae and Freddie Mac in a process called "Hustle", Fox Business reports.
The jury also found a top manager at Bank of America's Countrywide Financial unit, Rebecca Mairone, liable on one fraud charge of having opted for quantity over quality in its mortgage-writing program.
According to the report, the lawsuit stirred up from a whistleblower case originally brought by Edward O'Donnell, a former Countrywide executive.