{"id":5115,"date":"2010-12-16T00:00:00","date_gmt":"2010-12-16T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2010\/12\/bank_of_america_to_pay_137m_ov"},"modified":"2022-04-04T12:51:56","modified_gmt":"2022-04-04T17:51:56","slug":"bank-of-america-to-pay-137m-ov","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/bank-of-america-to-pay-137m-ov\/","title":{"rendered":"Bank of America to Pay $137M Over Alleged Investment Scam To Pay Municipalities Low Interest Rates on Investments and $9M Over Alleged Bid-Rigging Scheme to Nonprofits"},"content":{"rendered":"

Bank of America <\/a>has agreed to pay $137 million to settle charges that it was involved in a financial scheme that allowed it to pay cities, states, and school districts low interest rates on their investments. The financial firm allegedly conspired with rivals to share municipalities\u2019 investment business without having to pay market rates. As a result, government bodies in \u201cvirtually every state, district, and territory\u201d in this country were paid artificially suppressed yields or rates on municipal bond offerings\u2019 invested proceeds.<\/p>\n

Bank of America has agreed to pay $36 million to the Securities and Exchange Commission and $101 million to federal and state agencies. The Los Angeles Times <\/strong>is reporting that $67 million will go to 20 US states. BofA will also make payments to the Office of the Comptroller of the Currency and the Internal Revenue Service. The SEC contends that from 1998 to 2002 the investment bank broke the law in 88 separate deals.<\/p>\n

In its Formal Agreement with the Office of the Comptroller of the Currency, Bank of America agreed to strengthen its procedures, policies, and internal controls over competitive bidding in the department where the alleged illegal conduct took place, as well as take action to make sure that sufficient procedures, policies, and controls exist related to competitive bidding on an enterprise wide basis. The OCC is accusing the investment bank of taking part in a bid-ridding schem<\/a>e involving the sale and marketing of financial products to non-profit organizations, including municipalities.<\/p>\n

Per their Formal Agreement, the bank must pay profits and prejudgment interest from 38 collateralized certificate of deposit transactions to the non-profits that suffered financial harm in the scam. Total payment is $9,217,218.<\/p>\n

Related Web Resources:<\/strong><\/p>\n

Bank of America to Pay $137 Million in Muni Case<\/a>s, Bloomberg, December 7, 2010<\/p>\n

OCC, Bank of America Enter Agreement Requiring Payment of Profits Plus Interest to Municipalities Harmed by Bid-Rigging on Financial Products<\/a>, Office of the Comptroller of the Currency, December 7, 2010<\/p>\n

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

Bank of America has agreed to pay $137 million to settle charges that it was involved in a financial scheme that allowed it to pay cities, states, and school districts low interest rates on their investments. The financial firm allegedly conspired with rivals to share municipalities\u2019 investment business without having to pay market rates. As […]<\/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":[3751,3752,3951,3760,3795,3761,3741],"tags":[],"class_list":["post-5115","post","type-post","status-publish","format-standard","hentry","category-bank-of-america","category-financial-firms","category-municipal-securities","category-sec-enforcement","category-sec-settlements","category-securities-and-exchange-commis","category-securities-fraud"],"yoast_head":"\nBank of America to Pay $137M Over Alleged Investment Scam To Pay Municipalities Low Interest Rates on Investments and $9M Over Alleged Bid-Rigging Scheme to Nonprofits — Investor Lawyers Blog — December 16, 2010<\/title>\n<meta name=\"description\" content=\"Bank of America has agreed to pay $137 million to settle charges that it was involved in a financial scheme that allowed it to pay cities, 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