{"id":5100,"date":"2011-01-22T00:00:00","date_gmt":"2011-01-22T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/01\/bank_of_america_settles_for_42"},"modified":"2022-04-03T16:35:08","modified_gmt":"2022-04-03T21:35:08","slug":"bank-of-america-settles-for-42","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/","title":{"rendered":"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors"},"content":{"rendered":"

Bank of America Corp.<\/a> (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & Co. Inc.<\/a> of concealing the risks involved in investing in the subprime mortgage market. Under the terms of the settlement, Bank of America, which owns Merrill Lynch, will pay $4.25 million.<\/p>\n

The comptroller\u2019s office is keeping the terms of the securities settlement confidential. State Comptroller Thomas P. DiNapoli did announce last July that the New York pension fund wanted to recover losses sustained by investors from Merrill\u2019s alleged \u201cfraud and deception\u201d that \u201cartificially inflated\u201d the value of Merrill stock, which rapidly declined when the extent of exposure was revealed.<\/p>\n

By opting out of a similar class action complaint involving other funds, the state pension fund has a chance of recovering more from the investment bank. Another securities lawsuit that has yet to be resolved seeks to recover losses related to Bank of America\u2019s proxy disclosure when acquiring Merrill.<\/p>\n

The demise of the subprime mortgage market a few years ago contributed to the crisis in the housing market and the economic collapse that has affected millions in the US and the rest of the world. Investors have since stepped forward and filed securities claims and lawsuits against investment banks, brokers, and others in the financial industry for misrepresenting the risks involved with subprime mortgages that have resulted in losses in the billions.<\/p>\n

DiNapoli, BOA\/Merrill Lynch settle for $4.25 million,<\/a> Capitol Confidential, January 13, 2011<\/p>\n

The Subprime Mortgage Market Collapse: A Primer on the Causes and Possible Solutions<\/a>, The Heritage Foundation<\/p>\n

NY comptroller settles Merrill Lynch fraud suit<\/a>, BusinessWeek, January 13, 2011<\/p>\n

New York State Common Retirement Fund <\/a><\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bank of America Corp. (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & Co. Inc. of concealing the risks involved in investing in the subprime mortgage market. Under the terms of the settlement, Bank of America, which owns Merrill Lynch, will pay $4.25 million. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3751,3752,3864],"tags":[],"class_list":["post-5100","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms","category-subprime-mortgage"],"yoast_head":"\nBank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors — Investor Lawyers Blog — January 22, 2011<\/title>\n<meta name=\"description\" content=\"Bank of America Corp. (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & — January 22, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors — Investor Lawyers Blog — January 22, 2011\" \/>\n<meta name=\"twitter:description\" content=\"Bank of America Corp. (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & — January 22, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors — Investor Lawyers Blog — January 22, 2011","description":"Bank of America Corp. (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & — January 22, 2011","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/","twitter_card":"summary_large_image","twitter_title":"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors — Investor Lawyers Blog — January 22, 2011","twitter_description":"Bank of America Corp. (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & — January 22, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors","datePublished":"2011-01-22T06:00:00+00:00","dateModified":"2022-04-03T21:35:08+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/"},"wordCount":332,"articleSection":["Bank of America","Financial Firms","Subprime Mortgage"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/","url":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/","name":"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors — Investor Lawyers Blog — January 22, 2011","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2011-01-22T06:00:00+00:00","dateModified":"2022-04-03T21:35:08+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Bank of America Corp. (BAC) and the New York State Common Retirement Fund have settled the latter\u2019s securities fraud lawsuit accusing Merrill Lynch & — January 22, 2011","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-settles-for-42\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Bank of America Settles for $4.25M New York Securities Fraud Allegations that Merrill Lynch & Co. Inc. Hid Subprime Mortgage Risks from Investors"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1kg","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=5100"}],"version-history":[{"count":3,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5100\/revisions"}],"predecessor-version":[{"id":26189,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5100\/revisions\/26189"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=5100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=5100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=5100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}