A Seattle law firm, Hagens Berman Sobol & Shapiro, has filed a lawsuit against Bank of America over its apparent failure to satisfactorily distribute TARP funds to stem foreclosures.
According to a press release by Hagens Berman, Bank of America has made an “affirmative decision to slow the loan modification process for reasons that are solely in the bank’s financial interests.”
It will be interesting to monitor how this suit develops, as it strikes at the core issue of whether the government’s injection of capital into the banking market actually resulted in a positive result.