#Bank of America#Bank of America Merrill Lynch#Civil charges#BofA

Bank of America May Face Civil Charges

|Aug 2|magazine6 min read

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Bank of America may face civil charges over actions during the financial crisis related to mortgage-backed securities and similar assets.

The bank "has received a number of subpoenas and other requests for information from regulators and governmental authorities regarding MBS (mortgage backed securities) and other mortgage-related matters," it said in its quarterly report to the Security and Exchange Commission.

In the regulatory filing, BofA said the Justice Department has warned it that it intends to file civil charges related to one of two jumbo prime securitizations.

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Bank of America also stated that the Securities and Exchange Commission is considering filing civil charges against Merrill Lynch, from a collateralized debt obligation investigation, and The New York Attorney General’s office also intends to file action, from findings linked to an investigation of some of its residential mortgage-backed securities.

BofA spokesman Larry Di Rita told USA Today, "We've made progress putting many of the issues behind us and we'll continue to work to put the remainder of them behind us."

Bank of America is providing its full cooperation with the investigations. "The Corporation has been in active discussions with senior staff of each government entity in connection with the respective investigations and to explain why the threatened civil charges are not appropriate," the filing said.

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