SEC Lawsuit Against Bank Of America Should Proceed, Says Judge

On Monday, a federal judge recommended that U.S. Securities and Exchange Commission (SEC) should pursue a lawsuit against Bank of America Corp over $855 million of mortgage securities that soured during the global financial crisis.

Four days after urging dismissal of a related Department of Justice civil lawsuit, U.S. Magistrate Judge David Cayer in Charlotte, made the recommendation. This ruling is seen by many as a possible setback for government efforts for fighting fraud by Wall Street in the sale of mortgage securities.

“We are reviewing the magistrate judge’s recommendation carefully,” bank spokesman Lawrence Grayson said.

Both recommendations are subject to review by U.S. District Judge Max Cogburn in Charlotte. District judges are not bound by the recommendations of magistrate judges but often follow them.

Bank of America was accused by authorities of misleading Wachovia Corp, now part of Wells Fargo & Co, and the Federal Home Loan Bank of San Francisco about risks in the $855 million offering that dates from early 2008 and backed by 1,191 “jumbo” adjustable rate mortgages that proved less safe than expected.

The case is SEC v. Bank of America Corp et al, U.S. District Court, Western District of North Carolina, No. 13-00447.

7 Responses to “SEC Lawsuit Against Bank Of America Should Proceed, Says Judge”

  1. pilarlavallee says:

    Hurrah, that’s what I was looking for, what a material!
    present here at this blog, thanks admin of this web page.

  2. hassiepapathanasopoulos says:

    Hi, I do think this is an excellent web site. I stumbledupon it šŸ˜‰ I am going to revisit once again since i have saved
    as a favorite it. Money and freedom is the
    best way to change, may you be rich and continue to help other

  3. dewaynedoak says:

    Hello! Someone in my Facebook group shared this site with us
    so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers!
    Fantastic blog and fantastic design and style.

  4. catherine_flagg says:

    Why visitors still use to read news papers when in this technological globe
    the whole thing is presented on web?

  5. tammarashiels says:

    Hello There. I found your blog using msn. This is an extremely well
    written article. I will be sure to bookmark it and return to read more of your
    useful information. Thanks for the post. I wull definitely comeback.

  6. alejandrinanemeth says:

    Good blog you’ve got here.. It’s hard to find high quality writing like yours nowadays.
    I really appreciate people like you! Take care!!

  7. lillianamacarthur says:

    Way cool! Some extremely valid points! I appreciate
    you penning this write-up and also the rest of the site is
    very good.