Feds won't file fraud suit against Countrywide's Mozilo

LOS ANGELES, Calif. – Federal prosecutors won’t file a fraud lawsuit against former Countrywide Financial boss Angelo Mozilo over the sale of billions of dollars’ worth of subprime loans.

Mozilo’s lawyer, David Siegel, says Friday he’s gratified that the Department of Justice has decided not to bring a civil case against his client after a two-year investigation.

That effectively ends the chance of Mozilo facing a federal case. Prosecutors declined to file criminal charges against the former Countrywide chief executive in 2011.

Mozilo co-founded Countrywide. The loan giant helped fuel the housing bubble by giving mortgages to people who were unqualified. The subsequent crash led to a massive bailout of financial institutions by U.S. taxpayers.