The housing/banking/mortgage crisis may finally be catching up to Bank of America. The Feds have sued the bank for what the Justice Department and securities regulators said was a fraud on investors involving $850 million of residential mortgage-backed securities.
The Justice Department and the U.S. Securities and Exchange Commission filed the parallel suits in U.S. District Court in Charlotte, according to the court filings.
The securities date to about January 2008, the government said, putting them just at the beginning of the global financial crisis.
Apparently Bank of America is defending by claiming that its investors were all sophisticated and fully understood what was involved with the securities. Is that true? If you were an investor in mortgage backed securities sold by Bank of America, we would like to hear from you. Call me at 212-509-6544. We represent investors and financial professionals across the country, and have been doing so for decades.
DOJ Sues Bank Of America Over Mortgage-Backed Securities