Bank of America sued by US government

<p>The US government is launching legal action against Bank of America.</p>

The US government has confirmed that it is launching legal action against Bank of America.

It was announced that two lawsuits relating to fraud on $850 million (£553 million) of mortgage-backed securities have been filed against the bank.

The Justice Department and the Securities and Exchange Commission have each filed a suit against the bank and Attorney General Eric Holder said the government wants justice.

But Bank of America has refused to take the blame for the housing crisis that engulfed the US in the wake of the global financial downturn.

"We are not responsible for the housing market collapse that caused mortgage loans to default at unprecedented rates and these securities to lose value as a result," it argued in a statement released after news of the lawsuits broke.

Bank of America's share price currently stands at 14.64 and this is close to the stock's one-year high of 15.03.

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