US Government Sued Bank of America for Investor Fraud during 2008 Financial Crisis
The two departments of US Government filed a parallel lawsuit against Bank of America for the alleged fraud during the time of financial crisis of 2008.
The US Government on 7 August 2013 sued the Bank of America for the alleged fraud during the time of financial crisis. The Bank of America has been alleged for the investor fraud over the sale of 850 million US dollar worth of residential mortgage-backed securities.
A parallel lawsuit was filed by the US Justice Department and the US Securities and Exchange Commission in the US district Court of Charlotte, North Carolina accusing the bank for misleading the statements and its failure to disclose important information regarding the pool of mortgages related to the sale of securities to investors in 2008.
Earlier, the Bank of America agreed to pay in excess of 45 billion US dollar to settle the disputes related to the financial crisis of 2008. Bank of America allegedly knew that more than 40 percent of the mortgages did not comply with its standards, but sold them anyway.
About Bank of America
Bank of America is the second largest bank of US by assets, with its headquarters in Charlotte in North Carolina. By revenue it is the fifth largest company of United states and third among the non-oil companies after Walmart and General Electric.