On August 6, 2013, the US DOJ filed a civil lawsuit against Bank of America in a Charlotte federal courthouse, accusing the bank and several of its subsidiaries of failing to adequately disclose the risks associated with $850 million in mortgage bonds sold to investors during height of the banking crisis in 2008. Apparently, the bank didn't disclose that more than 70 percent of the mortgages backing the investments were written by brokers outside the bank's network. Investors eventually lost about $100 million on the investments. The Securities and Exchange Commission also filed a related suit against Bank of America during the day too. This is the most high-profile lawsuit since US took the Standard and Poor's to the court earlier this year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment