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Archive for the ‘Bank of America’ Category

B of A receives subpoenas over CLO sales

Massachusetts’ securities regulator on Friday subpoenaed Bank of America Corp. in connection with its involvement in two loan securities that resulted in $150 million in losses for investors.

William Galvin, the secretary of the commonwealth, is examining whether Bank of America knowingly overvalued the assets in the portfolios in order to get the loans off its books, according to a statement on Friday.

Mr. Galvin’s office has been investigating how banks structured and sold a variety of debt products in the run-up to the financial crisis, particularly mortgage-backed securities. The state was aggressive in its push to recoup investor money lost when the auction-rate securities market went bust four years ago.

In an interview on Friday, Mr. Galvin said he may seek documents from other banks. “We are definitely interested in other entities.”

Bank of America and four other banks agreed on Thursday to pay $25 billion to settle with a variety of state and federal regulators over alleged foreclosure abuses. That settlement leaves the door open for regulators to target the banking industry’s securitization practices.

Citigroup, JP Morgan and others pay California $2.3 million in muni investigation

Citigroup Inc., JPMorgan Chase & Co. and 15 other underwriters reimbursed California $2.3 million last year after a regulatory probe found they used taxpayer funds to pay fees to their lobbyists.

Citigroup, the third-biggest U.S. bank by assets, returned $479,994, while Bank of America Merrill Lynch repaid a combined $456,482 and JPMorgan paid $490,449 for itself and Bear Stearns Cos., which it acquired, according to a spreadsheet California Treasurer Bill Lockyer’s office sent to the Financial Industry Regulatory Authority. The documents were obtained by Bloomberg News through a California Public Records Act request.

The repayments were about 50 percent more than Lockyer had estimated was owed a year ago, when the practice was uncovered in a Finra investigation of the California Public Securities Association, which lobbies state officials for the municipal- bond industry.

Aidikoff, Uhl & Bakhtiari Investigates Bank of America Structured Products

Aidikoff, Uhl & Bakhtiari launches investigation on behalf of investors that purchased Bank of America structured investments which were represented as protecting principal. The investments the firm is investigating includes:

Bank of America (Basket EAGLES) Equity Appreciation Growth Linked Securities
Bank of America Return Linked Notes
Bank of America CYCLES (Capital Protected Equity Performance Linked Securities)
Bank of America EAGLES (Equity Appreciation Growth Linked Securities)
Bank of America Strategic Equity Exposure Performance Linked Securities
Bank of America Columbia Strategic Cash Portfolio

Bank of America Sells Record Number of Structured Notes

Bank of America Corp. raised $4.7 billion selling structured notes to U.S. investors through June, the most of any issuer and more than its 2009 total, as sales of the securities rose to a record pace.

Banks have sold $22 billion of structured notes to individual investors in the U.S. this year, according to data from regulatory filings compiled by Bloomberg. Sales are on pace to exceed what was a record $38 billion in 2008, according to StructuredRetailProducts.com, a database used by the industry.

The securities are created by banks, which package their own debt with derivatives to offer customized bets to investors while also raising money. Last year, Bank of America sold $4.1 billion of the products, second to Barclays’ $4.5 billion in sales, according to StructuredRetailProducts.com.

SEC Charges B of A For Statements To Investors About Merrill Lynch Purchase

The Securities and Exchange Commission today charged Bank of America Corporation for misleading investors about billions of dollars in bonuses that were being paid to Merrill Lynch & Co. executives at the time of its acquisition of the firm. Bank of America agreed to settle the SEC’s charges and pay a penalty of $33 million.

The SEC alleges that in proxy materials soliciting the votes of shareholders on the proposed acquisition of Merrill, Bank of America stated that Merrill had agreed that it would not pay year-end performance bonuses or other discretionary compensation to its executives prior to the closing of the merger without Bank of America’s consent. In fact, Bank of America had already contractually authorized Merrill to pay up to $5.8 billion in discretionary bonuses to Merrill executives for 2008. According to the SEC’s complaint, the disclosures in the proxy statement were rendered materially false and misleading by the existence of the prior undisclosed agreement allowing Merrill to pay billions of dollars in bonuses for 2008.

B of A To Pay $33 Million Fine

Bank of America has agreed to pay a $33 million penalty to settle government charges that it misled investors about Merrill Lynch’s plans to pay bonuses to its employees.

In seeking approval to buy Merrill, Bank of America told its shareholders that Merrill agreed not to pay year-end bonuses without Bank of America’s consent. But the Securities and Exchange Commission says Bank of America had authorized New York-based Merrill to pay $5.8 billion in bonuses.

The bonuses amount to nearly 12 percent of the $50 billion Charlotte, N.C.-based Bank of America paid for Merrill.

The SEC says Bank of America agreed to pay $33 million to settle the charges without admitting or denying the allegations.

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