Bank Of America: Justice Department Intends To File Civil Charges Against Us

Julie C. Nichols General

Huffington Post – Associated Press

Bank of America may be facing civil charges over mortgage backed securities and other mortgage-related matters. The bank said in a regulatory filing Thursday that the Department of Justice told the company that it intends to file civil charges related to one or two jumbo-prime securitizations. The SEC is also considering filing civil charges against Merrill Lynch tied to a collateralized debt obligation investigation. Banks used to regularly package mortgages into bundles known as CDOs, or collateralized debt obligations, and then sell them off in pieces to investors. Many went sour when the housing market collapsed. Additionally, the filing said that the New York Attorney General’s office intends to file action against Merrill Lynch, following an investigation of some of its residential mortgage backed securities.

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