Appellate court scraps DOJ's $1.3B penalty against Bank of America for financial crisis

May 23, 2016 9:06 PM

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NEW YORK, May 23 (UPI) -- A federal appeals court on Monday dealt a blow to the Justice Department's efforts to punish big banks for contributing to the financial crisis nearly a decade ago by overturning a massive penalty against Bank of America.

The U.S. Court of Appeals for the Second Circuit ruled that the federal government had not proven its case against the nation's second-largest bank -- and, accordingly, the North Carolina-based company does not have to pay the $1.27 billion penalty that stemmed from the case.

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